AdAgeSPECIALREPORT 6.24.02 47TH ANNUAL

Free profiles By R. CRAIG ENDICOTT of the Top 100 Ad dollars by THE GENERAL ECONOMIC malaise and media and brand, numbing events of Sept. 11 combined sales and earnings and key marketing to press the nation’s 100 Leading personnel are National Advertisers into reducing available online at AdAge.com their collective advertising to QwikFIND aan60i $80.94 billion in 2001, down 1.3% from the previous year. REVIEWING THE 47 years Advertising Age has produced its 100 Leading National Advertisers report, not since that other recession year of 1991, when the nation’s top advertisers recorded a 3.9% decline in ad spending, has negative ad growth been recorded. BOTH YEARS WERE scarred by the dual theme of recession and war: Recession-plagued 1991 was marked by the Persian Gulf War; the war on terrorism began in 2001, also a year of See LEADERS on Page S-16

Top 100 Automotive Restaurants Diapers Media leaders INSIDE GM holds on to the New models and Fast-casual chains Kimberly-Clark pins Top U.S. advertisers top spot despite 14.5% foreign luxury brands gobble share as hopes on Huggies ranked in each of 12 drop in U.S. ad dollar inflate sales in softer more diners’ tastes Supreme in bid to fend measured media for outlay Page S-2 market Page S-10 grow up Page S-14 off P&G Page S-20 2001 Page S-32 June 24, 2002 | Advertising Age |S-2 SPECIALREPORTLEADING NATIONAL ADVERTISERS

100 LEADING NATIONAL ADVERTISERS Ranked by total U.S. advertising spending in 2001 RANK TOTAL U.S. AD SPENDING ESTIMATED MEASURED CONSUMER YELLOW 2001 2000 ADVERTISER HEADQUARTERS 2001 % CHG UNMEASURED MEDIA MAGAZINE NEWSPAPER OUTDOOR TV RADIO INTERNET PAGES 1 1 General Motors Corp. Detroit $3,374.4 -14.5 $1,167.6 $2,206.9 $402.6 $225.6 $25.7 $1,452.9 $35.8 $44.3 $20.0 2 2 Procter & Gamble Co. Cincinnati 2,540.6 -2.8 838.4 1,702.2 522.0 10.3 10.2 1,117.6 31.2 10.9 0.0 3 3 Ford Motor Co. Dearborn, Mich. 2,408.2 2.7 1,138.4 1,269.8 304.7 210.5 14.0 681.0 20.9 14.0 24.7 4 6 PepsiCo Purchase, N.Y. 2,210.4 4.5 1,536.3 674.2 76.9 6.7 7.3 570.3 7.1 6.0 0.0 5 4 Pfizer New York 2,189.5 -3.0 1,384.8 804.6 169.5 12.5 0.1 591.9 27.8 2.8 0.0 6 5 DaimlerChrysler Auburn Hills, Mich./Stuttgart, Germany 1,985.3 -8.2 585.7 1,399.6 267.3 161.4 16.2 913.8 18.2 8.7 14.0 7 9 AOL Time Warner New York 1,885.3 6.2 320.5 1,564.8 310.0 266.3 27.4 892.3 41.6 27.2 0.0 8 7 Philip Morris Cos. New York 1,815.7 -7.7 490.2 1,325.5 461.0 6.3 41.5 784.7 23.6 8.3 0.0 9 8 Walt Disney Co. Burbank, Calif. 1,757.3 -3.4 702.9 1,054.4 143.9 211.4 25.5 618.4 43.8 11.5 0.0 10 10 Johnson & Johnson New Brunswick, N.J. 1,618.1 1.0 736.2 881.8 217.2 0.7 0.8 655.2 4.0 3.9 0.0 11 11 Unilever London/Rotterdam 1,483.6 -2.6 912.4 571.2 115.3 0.4 1.7 440.1 4.6 8.9 0.0 12 12 Sears, Roebuck & Co. Hoffman Estates, Ill. 1,480.1 0.8 816.6 663.5 47.3 156.4 1.1 399.2 33.1 9.0 17.4 13 13 Verizon Communications New York 1,461.6 5.1 613.9 847.7 14.9 353.1 11.2 394.0 69.1 5.5 0.0 14 15 Toyota Motor Corp. Toyota City, Japan 1,399.1 8.4 629.6 769.5 201.9 57.8 9.4 484.9 1.7 13.9 0.0 15 20 AT&T Corp. Basking Ridge, N.J. 1,371.9 13.0 863.8 508.1 24.4 44.4 9.3 395.5 18.8 7.8 8.0 16 21 Sony Corp. Tokyo 1,310.1 9.1 674.7 635.4 72.5 107.4 9.7 424.2 11.8 9.7 0.0 17 19 Viacom New York 1,282.8 4.9 567.2 715.6 89.5 132.6 19.7 417.5 47.9 8.2 0.0 18 16 McDonald’s Corp. Oak Brook, Ill. 1,194.7 -6.3 528.6 666.1 17.5 4.7 35.5 590.6 16.8 0.9 0.0 19 23 Diageo London 1,180.8 4.6 708.5 472.3 91.5 6.1 27.2 316.0 30.4 1.0 0.0 20 18 Sprint Corp. Westwood, Kan. 1,160.1 -6.2 533.6 626.4 21.9 217.2 4.4 360.4 17.0 5.6 0.0 21 28 Merck & Co. Whitehouse Station, N.J. 1,136.6 14.2 812.7 323.9 100.6 21.4 0.0 199.1 0.0 2.8 0.0 22 25 Honda Motor Co. Tokyo 1,102.9 6.6 424.6 678.3 130.7 16.8 2.8 517.3 0.6 10.1 0.0 23 26 J.C. Penney Corp. Plano, Texas 1,085.7 4.9 722.0 363.7 10.2 159.7 0.3 155.1 32.8 5.6 0.0 24 17 U.S. Government Washington 1,056.8 -16.3 475.6 581.2 111.3 63.7 7.3 360.0 29.4 9.6 0.0 25 29 L’Oreal Paris 1,040.7 5.5 541.2 499.6 237.8 1.0 2.7 255.4 1.1 1.7 0.0 26 22 IBM Corp. Armonk, N.Y. 993.5 -16.4 659.9 333.6 89.3 60.7 3.4 157.5 3.2 18.6 0.8 27 27 Bristol-Myers Squibb Co. New York 973.8 -2.8 516.1 457.7 142.6 72.2 0.7 229.1 8.5 4.5 0.0 28 30 Nestle Vevey, Switzerland 967.1 0.0 471.7 495.4 140.6 1.4 3.9 336.0 11.3 2.3 0.0 29 39 SBC Communications San Antonio, Texas 943.1 19.0 383.5 559.6 13.6 217.6 14.7 224.6 73.2 8.0 7.9 30 35 Target Corp. Minneapolis 925.7 11.9 453.6 472.1 57.6 195.9 2.2 183.0 27.2 6.2 0.0 31 32 Microsoft Corp. Redmond, Wash. 919.7 7.6 395.5 524.2 160.6 47.2 4.7 284.6 7.2 19.9 0.0 32 31 Coca-Cola Co. Atlanta 903.5 0.7 492.4 411.1 40.3 2.4 5.4 356.6 1.8 4.7 0.0 33 24 Hewlett-Packard Co.* Palo Alto, Calif. 898.7 -13.6 611.1 287.6 110.4 67.7 0.7 96.9 0.2 11.7 0.0 34 50 AT&T Wireless Redmond, Wash. 887.7 46.2 368.4 519.3 9.9 345.5 10.7 97.5 44.3 11.5 0.0 35 33 General Mills Minneapolis 883.5 3.5 247.4 636.1 74.6 1.6 3.1 551.3 4.5 1.1 0.0 36 34 GlaxoSmithKline Greenford, U.K. 881.1 5.2 114.5 766.6 135.3 3.5 1.7 617.1 5.5 3.5 0.0 37 36 WorldCom Clinton, Miss. 840.0 2.7 529.2 310.8 16.1 10.3 0.5 273.8 1.2 9.0 0.0 38 41 Sara Lee Corp. Chicago 812.1 8.4 621.3 190.8 62.4 6.3 2.9 109.8 7.8 1.6 0.0 39 47 Home Depot Atlanta 778.0 19.2 416.2 361.8 39.2 68.6 0.6 213.3 39.9 0.1 0.0 40 37 Nissan Motor Co. Tokyo 774.7 -4.8 228.5 546.2 121.3 37.7 13.2 361.9 3.1 8.9 0.0 41 46 Wyeth Madison, N.J. 770.8 15.2 443.2 327.6 46.9 3.6 0.1 264.1 9.8 3.1 0.0 42 42 Estee Lauder Cos. New York 766.4 6.8 643.8 122.6 92.5 0.1 0.8 28.1 0.2 1.0 0.0 43 38 Federated Department Stores Cincinnati 746.1 -7.8 126.8 619.3 22.3 526.5 1.6 56.3 3.7 8.8 0.0 44 45 Yum Brands Louisville, Ky. 676.5 0.6 110.3 566.2 0.5 0.5 6.7 542.4 8.6 0.6 6.9 45 56 News Corp. Sydney 670.4 21.2 167.6 502.8 49.6 129.0 17.6 267.1 36.5 3.0 0.0 46 52 ConAgra Omaha, Neb. 668.3 14.0 533.3 135.0 29.8 1.1 0.5 100.6 2.7 0.5 0.0 47 14 General Electric Co. Fairfield, Conn. 663.8 -49.3 432.0 231.8 37.8 24.3 1.5 143.4 15.1 2.7 7.0 48 43 Anheuser-Busch Cos. St. Louis 655.6 -7.7 288.5 367.2 25.2 9.0 44.7 284.9 0.5 2.8 0.0 49 44 Inc. McLean, Va. 614.8 -8.7 335.1 279.7 53.0 0.0 2.1 211.3 12.9 0.4 0.0 50 59 Kmart Corp. Troy, Mich. 596.7 10.1 256.6 340.1 10.2 152.4 1.9 168.3 5.4 2.0 0.0 Notes: Dollars are in millions. 2000 rankings represent data compiled in 2002. Measured media from Taylor Nelson Sofres’ CMR and Yellow Pages Integrated Media Association. Consumer magazine includes Sunday magazine; newspaper includes national newspapers; TV includes network TV, spot TV, syndicated TV and cable TV networks; radio includes network radio and national spot radio. *Hewlett-Packard Corp. includes Compaq Computer Co. Ranking continues on Page S-4. See Page S-26 for methodology. June 24, 2002 | Advertising Age |S-4 SPECIALREPORTLEADING NATIONAL ADVERTISERS

100 LEADING NATIONAL ADVERTISERS (CONTINUED) Ranked by total U.S. advertising spending in 2001 RANK TOTAL U.S. AD SPENDING ESTIMATED MEASURED CONSUMER YELLOW 2001 2000 ADVERTISER HEADQUARTERS 2001 % CHG UNMEASURED MEDIA MAGAZINE NEWSPAPER OUTDOOR TV RADIO INTERNET PAGES 51 55 Volkswagen Wolfsburg, Germany $595.8 6.7 $137.0 $458.7 $62.4 $34.8 $0.9 $351.2 $6.2 $3.2 $0.0 52 58 Pharmacia Corp. Peapack, N.J. 590.3 7.9 265.6 324.7 74.2 2.6 0.0 234.7 11.4 1.7 0.0 53 49 Nike Beaverton, Ore. 576.6 -6.7 369.0 207.6 81.5 1.2 3.0 116.9 1.2 3.8 0.0 54 63 Wal-Mart Stores Bentonville, Ark. 573.4 14.3 223.6 349.8 18.5 9.6 0.3 311.0 3.7 6.6 0.0 55 48 Bayer Leverkusen, Germany 567.1 -12.7 351.6 215.5 7.8 3.1 0.7 194.8 8.6 0.5 0.0 56 53 May Department Stores Co. St. Louis 552.8 -3.0 55.3 497.5 7.1 443.9 0.9 37.3 8.2 0.0 0.0 57 51 Novartis Basel, Switzerland 552.4 -6.1 314.8 237.5 64.6 5.6 0.0 163.6 3.0 0.6 0.0 58 64 Best Buy Co. Eden Prairie, Minn. 542.7 13.9 249.6 293.1 22.7 156.2 0.2 104.2 2.7 7.1 0.0 59 76 Cendant Corp. Parsippany, N.J. 527.2 27.4 371.7 155.5 12.1 27.4 24.7 67.5 4.7 12.0 7.0 60 57 Co. Cincinnati 511.6 -7.2 418.2 93.4 0.3 55.4 5.3 31.0 1.2 0.0 0.0 61 54 Vivendi Universal Paris 498.5 -12.1 114.7 383.8 20.4 71.1 10.4 253.2 6.6 22.2 0.0 62 62 Schering-Plough Corp. Madison, N.J. 497.8 -4.3 273.8 224.0 42.7 3.7 0.0 173.0 2.7 1.8 0.0 63 68 S.C. Johnson & Son Racine, Wis. 478.8 3.0 191.5 287.3 14.5 0.1 0.0 271.7 0.8 0.2 0.0 64 72 Gillette Co. Boston 463.4 3.9 287.3 176.1 25.5 0.2 0.0 146.6 2.4 1.4 0.0 65 75 Albertson’s Boise, Idaho 457.7 3.4 336.4 121.3 0.3 40.5 0.7 68.8 11.0 0.1 0.0 66 71 Mattel El Segundo, Calif. 448.6 -1.1 264.7 183.9 16.0 0.4 0.0 166.2 0.2 1.1 0.0 67 61 American Express Co. New York 444.5 -17.4 208.9 235.6 58.0 29.2 2.5 128.1 11.0 6.8 0.0 68 77 Safeway Pleasanton, Calif. 440.5 8.6 367.8 72.7 0.7 36.8 0.1 22.1 13.0 0.0 0.0 69 73 Adolph Coors Co. Golden, Colo. 430.1 -3.2 228.0 202.1 0.1 1.5 7.4 191.7 1.3 0.0 0.0 70 66 Limited Brands Columbus, Ohio 428.3 -8.6 344.8 83.5 23.9 5.3 0.3 52.0 0.0 2.0 0.0 71 40 Intel Corp. Santa Clara, Calif. 426.1 -44.9 298.3 127.8 21.8 6.7 1.6 86.5 3.3 7.9 0.0 72 67 Gap Inc. San Francisco 425.9 -8.9 178.9 247.0 42.3 2.7 23.0 161.8 5.3 11.9 0.0 73 69 Kellogg Co. Battle Creek, Mich. 421.5 -7.8 166.5 255.0 34.9 0.7 0.9 209.8 7.4 1.4 0.0 74 79 Aventis Strasbourg, France 421.0 10.9 270.7 150.3 60.7 19.2 0.3 62.8 5.4 1.9 0.0 75 65 Circuit City Stores Richmond, Va. 410.0 -12.6 108.6 301.3 11.5 148.6 0.6 130.3 3.5 6.8 0.0 76 89 Campbell Soup Co. Camden, N.J. 397.0 19.1 83.4 313.6 95.9 5.3 0.0 190.8 15.0 6.6 0.0 77 60 Morgan Stanley Dean Witter & Co. New York 385.1 -28.6 219.5 165.6 35.8 18.5 2.7 103.3 0.5 4.8 0.0 78 87 Hershey Foods Corp. Hershey, Pa. 365.5 8.4 188.3 177.3 16.4 0.0 0.4 156.3 3.6 0.6 0.0 79 90 Colgate-Palmolive Co. New York 355.2 6.7 248.7 106.6 32.8 0.0 0.0 73.2 0.3 0.3 0.0 80 74 Visa International San Francisco 347.4 -21.7 86.8 260.5 13.5 3.1 2.7 229.4 3.2 8.7 0.0 81 70 Berkshire Hathaway Omaha, Neb. 339.4 -25.3 96.7 242.7 24.1 10.8 2.5 175.5 29.4 0.5 0.0 82 85 Clorox Co. Oakland, Calif. 337.6 -0.6 37.1 300.5 101.4 0.0 0.0 192.1 4.5 2.4 0.0 83 83 U.S. dairy producers, processors Rosemont, Ill./Washington 330.4 -4.1 151.9 178.4 57.8 3.3 7.3 105.5 4.0 0.6 0.0 84 82 Eastman Kodak Co. Rochester, N.Y. 323.9 -6.0 171.7 152.3 29.4 3.2 0.2 118.5 0.0 1.0 0.0 85 98 Reckitt Benckiser Windsor, U.K. 316.2 7.8 105.9 210.2 75.5 0.1 0.0 131.7 2.0 1.1 0.0 86 97 Wendy’s International Dublin, Ohio 312.2 5.3 74.9 237.2 3.2 0.0 6.6 224.6 2.7 0.1 0.0 87 95 Kimberly-Clark Corp. Irving, Texas 304.3 1.4 72.3 232.0 74.2 0.1 0.0 154.8 0.1 2.8 0.0 88 94 Dell Computer Corp. Round Rock, Texas 302.2 -0.9 54.4 247.8 97.4 60.6 0.0 68.8 0.1 20.9 0.0 89 86 Hilton Hotels Corp. Beverly Hills, Calif. 296.0 -12.5 193.9 102.1 28.1 50.4 11.6 2.0 6.7 3.4 0.0 90 92 Saks Inc. Birmingham, Ala. 294.9 -5.8 199.1 95.8 30.8 53.8 0.4 6.2 2.4 2.2 0.0 91 96 State Farm Mutual Automobile Insurance Co. Bloomington, Ill. 291.8 -2.1 23.2 268.6 72.4 15.4 6.1 111.3 23.9 13.5 26.0 92 91 Mitsubishi Motors Corp. Tokyo 289.8 -9.5 60.5 229.2 6.9 34.8 1.7 184.0 0.0 1.8 0.0 93 84 Office Depot Delray Beach, Fla. 289.6 -15.7 186.8 102.8 1.1 24.9 0.2 66.3 6.5 4.0 0.0 94 78 Gateway Poway, Calif. 289.0 -27.4 88.1 200.8 14.4 45.0 6.3 118.8 2.6 13.7 0.0 95 107 Deutsche Telekom Bonn, Germany 289.0 7.1 81.2 207.8 0.0 130.2 0.1 71.1 2.3 0.0 4.1 96 111 Marriott International Washington 288.2 16.2 194.6 93.7 22.8 39.2 5.5 20.8 2.6 2.8 0.0 97 93 MasterCard International New York 288.1 -7.4 86.4 201.7 37.9 3.2 0.0 151.6 4.6 4.3 0.0 98 141 Kia Motors Corp. Seoul 286.9 71.4 82.2 204.7 18.2 0.3 0.7 185.3 0.0 0.1 0.0 99 113 Doctor’s Associates Milford, Conn. 285.9 21.7 108.6 177.3 0.3 0.4 1.2 174.9 0.3 0.2 0.0 100 99 Dillard’s Little Rock, Ark. 285.4 -1.2 71.3 214.0 8.4 204.3 0.0 1.0 0.3 0.0 0.0 Notes: Dollars are in millions. 2000 rankings represent data compiled in 2002. Measured media from Taylor Nelson Sofres’ CMR and Yellow Pages Integrated Media Association. Consumer magazine includes Sunday magazine; newspaper includes national newspapers; TV includes network TV, spot TV, syndicated TV and cable TV networks; radio includes network radio and national spot radio. See Page S-26 for methodology. June 24, 2002 | Advertising Age |S-6 SPECIALREPORTLEADING NATIONAL ADVERTISERS

DOMESTIC ADVERTISING SPENDING TOTALS By media bought in 2001 and 2000 100 LEADING NATIONAL ADVWERTISERS SUMMARY ALL US ADVERTISING SPENDING ADVERTISING EXPENDITURES MEDIUM AS % OF TOTAL ADVERTISING EXPENDITURES MEDIUM AS % OF TOTAL COEN’S U.S. TOTALS* MEDIA 2001 2000 % CHG 2001 2000 2001 2000 % CHG 2001 2000 2001 2000 % CHG Magazine $6,987 $7,055 -1.0 8.6 8.6 $16,417 $17,690 -7.2 7.1 7.1 $11,095 $12,370 -10.3 Sunday magazine 381 355 7.1 0.5 0.4 1,157 1,189 -2.7 0.5 0.5 NA NA NA Newspaper 5,262 5,600 -6.0 6.5 6.8 17,729 18,913 -6.3 7.7 7.6 37,640 41,821 -10.0 National newspaper 990 1,076 -8.0 1.2 1.3 2,932 3,805 -22.9 1.3 1.5 6,615 7,229 -8.5 Outdoor 597 494 20.8 0.7 0.6 2,380 2,398 -0.7 1.0 1.0 5,134 5,176 -0.8 Network TV 13,516 14,215 -4.9 16.7 17.3 18,638 20,276 -8.1 8.1 8.2 14,300 15,888 -10.0 Spot TV 5,634 7,093 -20.6 7.0 8.7 14,100 17,378 -18.9 6.1 7.0 21,479 25,806 -16.8 Syndicated TV 2,340 2,282 2.5 2.9 2.8 3,192 3,188 0.1 1.4 1.3 3,102 3,108 -0.2 Cable TV networks 5,413 5,223 3.6 6.7 6.4 10,291 10,206 0.8 4.4 4.1 11,883 11,765 1.0 Network radio 336 348 -3.6 0.4 0.4 834 953 -12.5 0.4 0.4 711 780 -8.8 National spot radio 810 932 -13.1 1.0 1.1 2,164 2,719 -20.4 0.9 1.1 2,956 3,668 -19.4 Internet 572 559 2.3 0.7 0.7 5,752 6,507 -11.6 2.5 2.6 5,752 6,507 -11.6 Yellow Pages 153 130 17.8 0.2 0.2 13,592 13,228 2.8 5.9 5.3 13,592 13,228 2.8 Measured media 42,989 45,363 -5.2 53.1 55.3 109,179 118,450 -7.8 47.2 47.9 134,259 147,346 -8.9 Unmeasured estimates* 37,951 36,648 3.6 46.9 44.7 122,108 129,022 -5.4 52.8 52.1 97,028 100,126 -3.1 Total U.S. advertising 80,941 82,011 -1.3 100.0 100.0 231,287 247,472 -6.5 100.0 100.0 231,287 247,472 -6.5 Notes: Dollars are in millions. Advertising expenditures by media from Taylor Nelson Sofres’ CMR except Yellow Pages from Yellow Pages Integrated Media Association. *Figure are extrapolated from Robert J. Coen’s media analysis at Universal McCann (AA, May 13) are shown in italic for com- parison. In the Coen figures, spot cable, local spot radio, direct mail, business papers and miscellaneous are included in unmeasured. For definitions, see Methodology, Page S-26. AA chart: Kevin Brown

DOMESTIC ADVERTISING SPENDING BY CATEGORY Ranked by measured U.S. expenditures in 2001 RANK TOTAL AD SPENDING SUNDAY NATIONAL NETWORK SPOT SYNDICATED CABLE NETWORK NATIONAL 2001 2000 CATEGORY 2001 % CHG MAGAZINE MAGAZINE NEWSPAPER NEWSPAPER OUTDOOR TV TV TV TV NETWORKS RADIO SPOT RADIO 1 1 Automotive $14,490.7 -6.4 $1,698.4 $32.4 $4,405.4 $322.8 $282.0 $2,448.1 $3,868.5 $171.3 $952.0 $57.7 $252.2 2 2 Retail, department & discount stores 12,938.3 -10.1 882.5 131.6 5,703.7 288.4 276.0 1,801.9 2,350.1 195.9 702.5 110.2 495.5 3 3 Movies, media & advertising 5,828.1 -15.0 976.3 27.2 1,447.4 321.5 214.9 1,188.0 660.3 193.6 525.4 89.8 183.7 4 4 Food, beverages & confectionary 5,820.7 -6.4 1,218.5 54.7 26.1 9.2 72.2 1,949.7 830.8 436.8 1,011.3 90.8 120.6 5 6 Medicines & proprietary remedies 5,212.9 2.4 1,229.2 125.4 148.1 28.4 5.6 2,034.9 213.7 496.1 797.1 90.9 43.4 6 5 Financial 4,512.3 -22.6 706.7 46.5 881.8 387.9 125.0 1,039.1 341.4 92.6 733.7 39.9 117.7 7 7 Telecommunications 3,805.2 -10.5 226.6 2.5 1,085.4 171.9 115.3 781.0 664.2 87.4 429.9 20.6 220.4 8 10 Toiletries, cosmetics, & personal care 3,710.9 1.1 1,426.6 27.1 8.4 4.5 12.2 1,226.2 161.9 341.4 461.6 27.7 13.3 9 9 Airline travel, hotels & resorts 3,654.2 -1.2 749.5 44.2 1,157.7 281.4 271.8 257.2 466.1 26.4 297.8 38.0 64.1 10 11 Restaurants 3,474.1 -5.3 36.5 3.1 89.3 7.6 183.9 1,166.1 1,296.2 183.3 363.9 24.2 119.8 11 13 Direct response companies 3,256.9 11.5 1,111.1 397.0 152.5 109.2 0.9 269.9 171.5 211.7 790.2 31.0 11.8 12 12 Home furnishings, appliances, etc. 2,739.1 -8.9 899.3 52.9 44.4 15.9 7.8 828.9 205.1 171.5 471.8 26.7 14.8 13 8 Computers, software, Internet 2,668.1 -36.1 863.7 5.3 111.5 257.4 42.0 623.3 212.2 56.9 407.9 17.9 69.9 14 14 Insurance & real estate 2,376.1 -6.3 262.6 23.6 663.3 152.4 130.4 313.6 331.7 88.8 308.5 37.6 63.7 15 16 Apparel 1,924.1 -2.3 1,326.6 32.3 7.5 18.6 28.0 302.6 23.3 27.4 143.4 4.0 10.4 16 15 Government, politics & organizations 1,564.4 -28.1 198.8 33.4 243.0 68.8 86.0 273.9 365.5 39.8 136.7 26.3 92.3 17 17 Beer, wine & liquor 1,516.0 5.7 398.4 6.0 19.2 14.3 148.5 545.3 123.4 21.8 182.4 8.6 48.2 18 18 Sporting goods, games, toys 1,200.8 -4.1 350.7 2.3 17.7 8.0 5.3 346.6 31.0 57.2 371.9 4.6 5.3 19 20 Audio & video equipment & supplies 1,101.3 1.6 305.9 24.2 45.7 21.8 9.1 332.3 85.6 34.0 199.6 18.9 24.2 20 19 Business & manufacturing equipment 887.6 -25.6 298.2 5.3 27.1 71.9 23.7 235.9 35.5 15.2 125.5 18.0 31.4 21 22 Pets, pet foods & supplies 458.5 -8.7 108.4 11.8 1.5 0.5 0.5 182.0 24.1 38.7 87.8 0.3 2.9 22 21 Cigarettes, tobacco & accessories 358.4 -34.1 258.8 11.1 8.3 3.3 0.8 40.9 2.3 21.7 11.0 0.0 0.1 23 23 Gasoline & oil 211.0 -40.9 34.5 0.5 3.6 7.7 4.2 43.6 27.5 10.3 50.6 2.8 25.7 24 24 Fitness & diet programs 166.6 -0.4 6.7 0.4 17.5 0.8 3.7 3.7 113.5 8.3 4.8 0.1 7.0 Miscellaneous 5,958.5 -4.3 842.4 56.2 1,413.1 358.3 330.3 403.2 1,495.0 163.9 723.9 47.0 125.2 Total 89,834.9 -9.0 16,416.9 1,157.2 17,729.3 2,932.4 2,380.1 18,637.8 14,100.4 3,192.1 10,291.3 833.7 2,163.7 Notes: Dollars are in millions. 2000 rankings represent data compiled in 2002. This table includes only 11 measured media from Taylor Nelson snacks, Dairy, produce, meat & bakery goods, Prepared foods, Ingredients, mixes & seasonings; Home furnishings, appliances, etc.: Household Sofres’ CMR. Yellow Pages and Internet are excluded. Some categories are aggregated from CMR classifications called Industry Classes as fol- soaps, cleansers & polishes, Household furnishings & accessories, Building materials, equipment & fixtures, Home & building, Household appli- lows: Apparel: Ready-to-wear, Underclothing & hosiery, Apparel, Jewelry & watches, Apparel accessories and Footwear; Business & manufactur- ances, equipment & utensils, Household supplies; Medicines & proprietary remedies: Pharmaceutical houses, Medicines & proprietary remedies, ing equipment: Manufacturing: materials & equip/freight/ind dev, Office machines, Furniture & supplies, Business & technology; Toiletries, cos- Drugs, Eye glasses, medical equip & supplies; Miscellaneous: Aviation (excluding freight), Miscellaneous services & amusements, Schools, camps, metics & personal care: Cosmetics & beauty aids-wmn, m&w, unisex, Personal hygiene & health-wmn, m&w, unisex, Hair products & access-wmn, seminars, General, Miscellaneous merchandise, Horticulture & farming; Retail, department & discount stores: Discount department & variety m&w, unisex, Toiletries, hygienic goods & skin care-men; Food, beverages & confectionary: Food & beverages, Beverages, Confectionery & stores, Department stores, Retail, Shopping centers & catalog showrooms. June 24, 2002 | Advertising Age |S-10 SPECIALREPORTLEADING NATIONAL ADVERTISERS

Calif.) and Ford’s Volvo (Havas Advertising’s New vehicle styling and a strong ad effort AUTOMOTIVE Euro RSCG MVBMS Partners, New York); are behind the success of both Cadillac and Porsche Cars North America (Interpublic’s Infiniti, says Mr. Sanfilippo. Mitsubishi’s Carmichael Lynch, Minneapolis); Mazda gains are “much more marketing driven” Bevy of new models cause swoon North American Operations, in which Ford than some brands showing sales gains, he has a controlling interest (independent Doner, says. Pierre Gagnon, president-chief By JEAN HALLIDAY Marketers enjoying big sales gains with Southfield, Mich.); and GM’s Oldsmobile operating officer of Mitsubishi, says the new products include Jaguar with the X-Type (Bcom3 Group’s Leo Burnett USA, Chicago) brand’s ongoing campaign from Deutsch “is today’s auto industry could be likened to an (handled by WPP Group’s Y&R Advertising, and Saturn (Omnicom’s Goodby). having a major impact on sales” even though overmatched soccer game. Much of the play is New York) and Land Rover with the Isuzu, 49% held by GM and unprofitable, Mitsubishi doesn’t have a lot of new models. at midfield but most of the action is at one end Freelander sport-utility vehicle (Omnicom launched its all-new Axiom SUV last year in The Lancer did replace the Mirage sedan this where industry high-flyers are generating Group’s GSD&M, Austin, Texas), both ads that brought back its 1980s spokesman Joe year. Although its national ad budget has double-digit sales growth. owned by Ford Motor Co. and priced for Isuzu. “The Axiom is a nice product, but declined, Mitsubishi has more than tripled the A bounty of new models is helping the entry-level lux buyers; General Motors Isuzu’s marketing plan in 2001 was poorly ad dollars from its regional dealer groups over brands with strong returns. And it doesn’t Corp.’s Cadillac CTS sedan and Escalade EXT conceived and poorly executed,” says Jim the past three years because dealer funds rise hurt to be a foreign marque or a luxury brand sport-utility (Bcom3 Group’s D’Arcy Masius Sanfilippo, exec VP of auto consultancy AMCI. with sales volumes. Dealer groups’ ads have to be among these best performers (see Benton & Bowles, Troy, Mich.), Buick Rick Balsiger, Isuzu VP-marketing and the same look as the national, but put more accompanying chart). Rendezvous SUV (Interpublic Group of Cos.’ product planning, admits the brand faded emphasis on vehicle features. The industry offered a total of 1,314 McCann-Erickson Worldwide, Troy) and from buyers’ radar screens because of “very models in the 2002 model year vs. 1,165 the niche player Saab’s 9-5 sedan and sport wagon little if any investment in advertising” in 1999 ZERO-DOWN, 0% FINANCING year before and just 910 in the ’95 model year, (Interpublic’s Lowe, New York). and 2000. In 2001, the marketer spent $36 Mitsubishi has been tagging all its national according to Advertising Age sibling million, CMR reports. and regional TV spots with a zero-down and Automotive News. COMMON THEMES Mercury is using only regional advertising 0% financing message since 1999. But Mr. “New product drives ,” says Other big winners include BMW of North for its models. But the carmaker most likely will Gagnon says the marketer’s incentive costs Steve Sturm, VP-marketing of Toyota Motor America’s top-of-the-line 7-Series (Publicis’ return to national advertising for the upcoming have fallen since then, with a 25% drop in the Sales USA’s Toyota Division. “There’s a huge Fallon, Minneapolis), Nissan North launch of Marauder, a high-performance first quarter of 2002 over the same ‘01 period. amount of fresh product.” As an example, America’s Infiniti G35 sedan (Omnicom’s version of the Grand Marquis sedan. A staple of the industry for years, Toyota currently is launching the Matrix in a TBWA/Chiat/Day, Playa del Rey, Calif.), Earlier this year, Ford indicated it would incentives accelerated in earnest during 2001’s campaign from Publicis Groupe’s Saatchi & Mitsubishi Motor Sales of America’s Lancer discontinue Mercury’s Villager minivan and fourth quarter in the weeks after Sept. 11. GM Saatchi, Torrance, Calif., and earlier this year sedan (Interpublic’s Deutsch, Los Angeles) Cougar coupe as part of its restructuring plan jumped in first with its “Keep America introduced the new Corolla. and Kia Motors America’s Sedona minivan to return to profitability. Sales of the brand’s Rolling” 0% financing national campaign. Toyota spent $37 million in measured (independent davidandgoliath, Los Angeles). Sable midsize sedan and full-size Grand Others followed, lifting the industry to its media in first quarter 2002, reports Taylor Most makes in at least temporary decline Marquis are also sliding. Mercury’s second-best sales year with a total of 17.2 Nelson Sofres’ CMR, which would annualize share common themes: low ad investment, Mountaineer SUV, redone for the 2002 million vehicles sold in 2001. to its 2001 expenditure of $152 million. poorly conceived marketing plans, limited model year, “is keeping them in the game Mr. Spinella says CNW’s buyer surveys in All-new or redone models have new product. now,” says Mr. Sanfilippo, noting Ford- the weeks after Sept. 11 revealed incentives traditionally sparked sales. In recent years, Auto brands with declining vehicle sales owned Volvo also is “waiting anxiously” for drove people “who weren’t even intending to consumers are buying, not out of necessity include Isuzu Motors America (Omnicom’s its first true SUV later this year. Volvo is buy a car” to showrooms “because the deals but from a desire to have the latest cool new Goodby, Silverstein & Partners, San suffering because it’s losing buyers related to were so good. There’s substantial money on arrival, says Art Spinella, VP of consultancy Francisco); Ford’s Lincoln and Mercury its new styling and added focus on vehicle the table” with the exception of American at CNW Marketing/Research. brands (WPP’s Y&R Advertising, Irvine, performance, according to CNW research. Honda Motor Co. ■

TOP CAR & LIGHT TRUCK BRANDS BEST & WORST PERFORMING CARS & TRUCKS By share of U.S. market in 2001 By unit sales growth in the U.S. for January through May 2002 U.S. MEASURED ADVERTISING SPENDING UNIT SALES GROWTH SHARE OF U.S. UNIT SALES MEASURED MEDIA AD SPENDING SHARE OF U.S. UNIT SALES IN 11 CONSUMER MEDIA PER UNIT SOLD PER 2001 JAN-MAY JAN-MAY FULL YEAR IN 11 CONSUMER MEDIA PER 2001 RANK MAKE 2001 2000 2001 2000 2001 2000 SHARE POINT RANK MAKE 2002 2002 2001 2000 2001 2000 SHARE POINT 1 Ford 19.2% 19.9% $656 $589 $199 $170 $34 BEST PERFORMERS 2 Chevrolet 15.6 15.0 780 820 291 315 50 1 Jaguar 62.0% 0.4% 0.3% 0.3% $66.7 $53.1 $222.3 3 Toyota 8.8 8.1 568 606 375 429 64 2 Land Rover 54.1 0.2 0.2 0.2 34.8 33.4 174.0 4 Dodge 7.3 8.4 499 661 398 454 68 3 Saab 23.1 0.2 0.2 0.2 34.0 107.2 107.2 5 Honda 6.0 5.8 452 439 436 432 75 4 Kia 22.7 1.4 1.3 0.9 204.5 119.4 157.3 6 Nissan 3.7 3.9 428 489 678 727 116 5 Hyundai 15.5 2.2 2.0 1.4 169.4 143.0 84.7 7 GMC 3.1 2.9 197 240 366 479 63 6 Mitsubishi 15.0 2.2 1.9 1.8 227.4 250.2 119.7 8 Pontiac 3.1 3.5 218 282 408 459 70 7 Infiniti 14.9 0.5 0.4 0.5 97.6 118.4 244.1 9 Chrysler 3.1 2.8 474 524 894 1,082 154 8 BMW 12.5 1.4 1.2 1.1 52.1 85.1 43.4 10 Jeep 2.7 2.8 247 315 543 636 93 9 Cadillac 12.5 1.0 1.0 1.1 127.5 204.3 127.5 11 Buick 2.4 2.3 160 255 394 629 68 10 Nissan 8.6 4.1 3.7 3.9 425.6 488.2 115.0 12 Volkswagen 2.1 2.0 366 350 1,029 986 177 Total top 10 13.7 12.2 11.4 1,426.9 1,529.1 NA 13 Hyundai 2.0 1.4 170 145 490 593 84 WORST PERFORMERS 14 Mitsubishi 1.9 1.8 227 251 706 798 121 1 Isuzu -48.1% 0.3% 0.5% 0.6% 58.8 36.4 $117.6 15 Mercury 1.8 2.1 120 97 386 271 66 2 Oldsmobile -40.0 0.1 1.4 1.7 115.8 247.2 82.7 16 Mazda 1.6 1.5 178 205 661 803 113 3 Daewoo -30.0 0.3 0.3 0.4 7.5 45.9 25.0 17 Saturn 1.5 1.6 148 313 566 1,150 97 4 Mercury -22.8 1.5 1.8 2.1 115.0 97.4 63.9 18 Oldsmobile 1.4 1.7 117 251 500 869 86 5 Porsche -16.6 0.1 0.1 0.1 15.2 11.6 152.1 19 Lexus 1.3 1.2 187 184 836 893 144 6 Lincoln -16.6 0.8 0.9 1.1 138.4 164.6 153.8 20 Kia 1.3 0.9 205 119 914 744 157 7 Volvo -15.1 0.6 0.7 0.7 81.2 99.2 116.0 21 BMW 1.2 1.1 81 99 381 520 65 8 Mazda -10.6 1.5 1.6 1.5 177.3 203.3 110.8 22 Mercedes 1.2 1.2 135 151 652 736 112 9 Ford Division -10.3 17.7 19.2 19.9 644.1 570.4 33.5 23 Subaru 1.1 1.0 127 105 681 611 117 10 Saturn -9.1 1.6 1.5 1.6 147.3 311.7 98.2 24 Cadillac 1.0 1.1 137 216 799 1,140 137 Total top 10 25.4 26.5 28.1 1,353.4 1,476.1 NA 25 Acura 1.0 0.8 216 211 1,265 1,480 217 Total unit in millions 6.90 17.18 17.40 7,842.1 8,762.7 NA Notes: Ad dollars and ad dollars per share point are in millions. Ad dollars per unit sold are actual. Measured media from Taylor Nelson Sofres’ CMR. Total units sold were Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR. Total units sold were 6.90 million, down 2.7%. Market shares and unit sales from Auto- 17,177,445 in 2001 and 17,402,486 in 2000. Market shares and unit sales from Automotive News. Advertising dollars per unit and ad dollars per share point are Advertis- motive News. Only megabrands with 1,000-plus unit sales were included in the chart. Oldsmobile is being gradually phased out. Daewoo Motor America declared bank- ing Age estimates. ruptcy in May 2002 after General Motors Corp. bought most of its parent company’s assets, excluding its U.S. sales arm. June 24, 2002 | Advertising Age |S-12 SPECIALREPORTLEADING NATIONAL ADVERTISERS

TOP 10 DRY DINNER MIXES PREPARED DINNERS By U.S. market share for category that includes mixes with meat MEASURED MEDIA AD SPENDING MARKET SHARE IN 11 CONSUMER MEDIA PER 2001 Oven meals challenge microwave RANK CARRIER 2001 2000 2001 2000 SHARE POINT 1 Betty Crocker (1) 58.7% 64.2% $18.9 $31.6 $0.3 By STEPHANIE THOMPSON gory with meat, says Tim McMahon, VP- 2 Banquet Homestyle Bakes 16.8 11.3 0.0 0.0 NA marketing and communications for ConAgra. 3 Kraft Stove Top Oven Classics (2) 8.9 9.8 4.4 13.7 0.5 betty crocker has been helping people make “We make the concept of preparing a fresh 4 Private Label 4.6 4.6 0.0 0.0 NA a great meal for 31 years and all but claiming hot meal a little easier on the head, cutting out 5 5.1 2.8 14.4 0.0 2.8 full ownership of the dry dinner mixes cate- the step of looking for a cut of meat and offer- Campbell’s Supper Bakes gory in the process, but now Helper parent ing a good, quality protein inside the product. 6 Lipton Sizzle & Stir 4.1 5.3 17.4 20.9 4.2 General Mills may have to become a little That was the eureka for us.” 7 Chef Boyardee 0.7 0.8 0.0 0.1 NA more helpful. Accentuating its point of difference, 8 Zatarains 0.4 0.5 0.0 0.0 NA In the last few years, major food marketers ConAgra will add 10% more meat in Septem- 9 Luzianne 0.2 0.2 0.0 0.0 NA like Kraft Foods, Campbell Soup Co., and ber. It has sparked the highest repeat purchase 10 Leonardo 0.1 0.2 0.0 0.0 NA Unilever Bestfoods have entered dry dinner rate in five years according to IRI. Total top 10 99.6 99.6 55.1 66.3 NA mixes with their own convenient meal offer- Total market in millions $604.9 NA 89.6 76.6 NA ings, making the category one of the fastest MEAT VS. MEATLESS Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR. Megabrand shares and total market from Information Resources Inc. 1) Betty Crocker in- growing in the aisle, achieving The competition has not come out with its cludes “Helpers” for Hamburger, Tuna, Chicken, Homestyle Hamburger and Chicken Oven Flavored. 2) Kraft includes Stove Top Oven Classics and Kraft dry dinner mixes. 17% growth in dollar sales in 2001, according own meat-filled offerings despite Home- to Information Resources Inc. In the process, style’s home run. Betty Crocker Hamburger they have knocked General Mills’ category Helper will counter this year by introducing “continues to focus and leverage the [Stove up with a much more high-quality meal than share from 72.2% in 2000 to 58.7% for the four Mexican varieties, Cheesy Enchildada Top Oven Classics] line without meat,” a with other varieties,” a Campbell spokesman year ended April 21, 2002, according to sales and Beef Taco among them, co-branded with spokeswoman says. This year it will add three says. data from IRI. the Old El Paso seasonings that came with new entrees, including a Soft Taco Bake, its For its part, Unilever recently shifted its ConAgra Foods’ shelf-stable Banquet General Mills’ acquisition of Pillsbury Co. “At first Mexican item and the first to require con- large-scale ($17 million) ad spending, away Homestyle Bakes meal kits are turning up the this point, we don’t have anything planned for sumers to add beef rather than chicken. from Sizzle & Stir to its far larger Lipton side heat even more. In just under a year, the the Helper line with meat in it,” says a Gener- Campbell Supper Bakes, unveiled last dish line, in the process shelving the Sizzle & brand has grown to $102 million in sales, and al Mills spokeswoman. year, is gaining Southwest Chicken with Rice Stir campaign. The brand has withered, drop- commandeered 16.8% of the category, ac- Kraft, its share in the category resting at and Cheesy Chicken, sauces in an easy-open ping 24% to $25 million in sales for the year cording to IRI. It’s the only player in the cate- 8.9% last April, down from 12.6% in 2000, can. “At the end of the day, we think you end ended April 21, according to IRI. ■ June 24, 2002 | Advertising Age | S-13 SPECIALREPORTLEADING NATIONAL ADVERTISERS

TOP 7 MOPS, BROOMS & CLEANING TOOLS CLEANING PRODUCTS By share of U.S. market MEASURED MEDIA AD SPENDING MARKET SHARE IN 11 CONSUMER MEDIA PER 2001 Mops’ niche attracting a crowd RANK BRAND 2001 2000 2001 2000 SHARE POINT 1 Swiffer 18.8% 15.8% $39.0 $32.4 $2.1 By JACK NEFF son & Son’s aerosol-power Pledge Grab-It 2 Pledge Grab It 11.6 12.0 32.3 27.7 2.8 Go Mop will get $8 million in marketing sup- 3 Quickie 7.6 8.0 0.3 0.4 NA to improve cost efficiency, package-goods port this fall and Reckitt Benckiser’s Lysol 4 Private Label 6.0 6.1 NA NA NA marketers increasingly target new products Floor Wipes, usable by hand or mop, got net- 5 Libman 4.2 4.5 NA NA NA toward narrow segments. But the fast-grow- work TV support when it entered the market 6 4.1 4.4 ing “bucketless mop” business has had such in first quarter 2002. Collectively, the Rubbermaid NA NA NA broad appeal that rivals Clorox Co. and Procter emerging segment is still rooted in the “old- 7 O Cedar Originals 2.6 2.8 NA NA NA & Gamble Co. find themselves throwing some fashioned” cleaning tools, mops and brooms Total top 7 54.9 53.6 71.6 28.4 1.3 of that caution to the wind. market by Information Resources Inc., val- Total sales in millions $420.3 $399.7 NA NA NA “We’re doing pretty much mass-market- ued at $443.4 million at the end of first quar- Notes: Dollars are in millions. Measured media based on full brand line from Taylor Nelson Sofres’ CMR. Shares and total market value from Information Resources Inc. Clorox ReadyMop entered the market in first quarter 2002, claiming 4.4% of the market covering the 52-week period ending March 24. ing because mops are used in the majority of ter 2002. The category was valued at $420.3 homes, and the majority of people would like million at yearend 2001. to mop in half the time,” says Chris Vickers, ReadyMop may have been a relative late- marketing director for Clorox ReadyMop, comer to bucketless mops, following WetJet in P&G cut prices twice this year to achieve Rivalry has been intense partly because which like P&G’s Swiffer WetJet, eliminates the U.S. by months, but it still took the market price parity with ReadyMop, helping WetJet every $25 mop is likely to yield hundreds of much of the mess, elbow grease and heavy lift- by storm. gain wider distribution in recent weeks and re- dollars in sales of replacement pads and clean- ing of floor cleaning materials—benefits cer- ReadyMop’s lower retail price of $25 vs. claim, along with its non-motorized cousin ing solution. And since each mop has a propri- tainly perceived by most as broadly based. $50 originally for WetJet helped it win distrib- Swiffer Wet, overall share leadership in the etary design, replacements aren’t necessarily Budgets have been bigger than usual for ution in food and drug stores that WetJet wet mopping segment. interchangeable or easily copied by private la- household cleaning. P&G has spent about lacked. ReadyMop, launched in January, had Following WetJet’s price cut, P&G’s share bel. P&G and Clorox say replacement supply $25 million in media alone on the motorized sales of $19.5 million through March 24, ac- of the cleaning tools and mops category rose to sales are ahead of expectations. WetJet since its August launch. The pump- cording to IRI. WetJet, with limited distribu- 20.9% in the four weeks ended May 19, up 2.8 “There are still a lot of interested skeptics operated ReadyMop has a $35 million mar- tion in the IRI-tracked channels, had sales of points from the previous four weeks, according who haven’t come into the category,” says keting budget that includes TV spots, less than $1 million. IRI scanner data don’t in- to IRI figures reported by Alliance Capital Maurice Coffey, brand manager of P&G’s “demo-mercials” and paid product place- clude Wal-Mart Stores, or club or home im- Management’s Sanford C. Bernstein unit, as WetJet. “It’s still early in the life cycle of quick ment on ABC-TV’s “The View.” S.C. John- provement stores. Clorox’s share fell 2.4 points to 12.7%. cleaning.” ■ June 24, 2002 | Advertising Age |S-14 SPECIALREPORTLEADING NATIONAL ADVERTISERS

TOP 10 RESTAURANT MARKETERS RESTAURANTS By share of total U.S. restaurant sales in 2001 MEASURED MEDIA AD SPENDING MARKET SHARE IN 11 CONSUMER MEDIA PER 2001 Fast casual perks up taste buds RANK BRAND 2001 2000 2001 2000 SHARE POINT 1 McDonald’s Corp. 7.8% 7.9% $664.3 $709.7 $85.3 By KATE MACARTHUR major restaurant segment can claim such a 2 Yum Brands 5.4 5.6 534.5 561.7 98.6 large percentage of any age group. 3 Diageo 3.2 3.3 303.4 392.8 94.2 despite capturing roughly 2% of all “Generation by generation gets more 4 Wendy’s International 2.3 2.3 237.1 245.9 102.2 restaurant traffic and dollars, the impact of cuisine literate,” says Dennis Lombardi, 5 Darden Restaurants 1.5 1.5 145.5 152.6 95.2 fast casual on the $269.4 billion restaurant executive VP, Technomic. “You’ve got 15- 6 1.7 1.5 177.0 131.6 106.0 category is increasingly impossible to ignore. year-old kids now who know what a panini is. Doctor’s Associates 7 1.2 1.2 42.6 50.6 35.9 Restaurants seemingly as disparate as As their food experiences accelerate what Allied Domecq Chipotle, Fazoli’s and Boston Market, all or they’ll want from menus will accelerate.” 8 Brinker International 1.2 1.1 67.4 70.4 57.5 partly owned by McDonald’s Corp., are Casual-dining chains are also well aware of 9 Domino’s Inc. 1.0 1.0 114.2 123.6 109.2 leaders among this emerging segment. the encroachment. “The fact you now have 10 Applebee’s International 1.1 1.0 87.1 78.4 81.7 “Fast casual is having an impact from a Chili’s Too tells you something,” says Mr. Top 10 26.4 26.5 2,373.1 2,517.2 NA perceptual standpoint,” says Neil Stern, Lombardi. ”I think it [movement into or Total U.S. market in billions $269.40 $257.70 3,291.6 3,479.7 NA partner at McMillan Dolittle retail borrowing concepts from the segment] will be Notes:Media spending in thousands from Taylor Nelson Sofres’ CMR. Shares based on sales from Technomic Information Services. consultancy. “You’re creating this new like an Oklahoma land rush and there will be category, but overall the numbers are pretty lots of concepts running out and there will be TOP 10 FAST-CASUAL CHAINS small. It’s a reflection that the fast-food a fair amount of consolidation.” By share of U.S. sales for fast-casual restaurants in 2001 category is tired.” Moreover, fast-feeders have unanimously MEASURED MEDIA AD SPENDING Only a year ago, industry executives were acknowledged that to drive growth, they must MARKET SHARE IN 11 CONSUMER MEDIA PER 2001 still dubious about how fast casual, a hybrid of jump on the fast-casual bandwagon. With fast- RANK BRAND 2001 2000 2001 2000 SHARE POINT quick service and casual dining, would shape food sales rising at a rate of 4.6% annual 1 Boston Market (McDonald’s) 18.6% 21.6% $21.3 $36.6 $1.1 their business. Now, marketers in both compounded rate, the 16.6% sales pop of the 2 Panera Bread/St. Louis Bread 15.7 12.1 0.1 0.1 0.0 segments alike are morphing their 3 Fazoli’s (McDonald’s) 12.0 13.1 6.9 9.0 0.6 own restaurants to emulate the 4 Fuddrucker’s 7.8 8.6 0.5 0.6 0.1 customer experiences and revenue “You’ve got 15-year-old kids now 5 Au Bon Pain 6.1 6.8 0.0 0.1 0.0 growth associated with fast-casual who know what a panini is. 6 6.0 6.0 0.0 0.0 0.0 concepts. Fast casual has become so Souplantation/Sweet Tomatoes influential that leading restaurant As their food experiences 7 Baja Fresh Mexican Grill (Wendy’s) 5.2 3.7 0.0 0.0 0.0 researchers Technomic and accelerate what they’ll want 8 Chipotle (McDonald’s) 4.3 2.4 0.3 0.0 0.1 NPDFoodWorld have officially from menus will accelerate” 9 la Madeleine 3.6 4.3 0.0 0.0 0.0 begun tracking the segment. 10 Corner Bakery (Brinker) 3.5 3.7 0.0 0.0 0.0 Technomic has classified 19 chains Total top 10 82.6 82.2 29.0 46.4 NA among its top 200 restaurant companies as fast-casual segment has whet the appetites of Total fast-casual market $3.38 $2.90 0.0 0.0 NA fast casual. Technomic further estimates the the industry’s biggest chains. The total industry Notes:Media spending in thousands from Taylor Nelson Sofres’ CMR. Shares based on sales from Technomic Information Services and Salomon Smith Barney. Total total revenue impact could be as high as $7 is forecast to grow by 5.2% annually through market based on chains identified as fast-casual in Technomic's top 200 chains as defined by total revenue. billion, depending on how the concept is 2006, with casual-dining growth now slowing defined. Its 19 chains accumulated $3.38 to 10.9%, from 11.1% in the last five years. billion in revenues in 2001, up 16.6%. Share leaders in the top 10 restaurant Horton’s coffee, donut and sandwich chain to companies did less of in 2001 was to advertise, companies are quickly gobbling up fast-casual 3,000 units within three years, including 35 according to Taylor Nelson Sofres’ CMR. THE $6 TO $9 CHECK chains. No. 1 McDonald’s Corp. will expand stores in the U.S. Horton’s bears elements of Only Doctor’s Associates’ Subway Technomic’s working definition for fast its Chipotle and Diner in a McDonald’s fast casual. Restaurants and Applebee’s International’s casual include restaurants with limited- concepts and it bought a stake in Fazoli’s Applebee’s Neighborhood Bar & Grill boosted service or self-service formats, check averages Italian sandwich and pasta chain with an SPRUCING UP 2001 ad budgets. Diageo’s Burger King Corp. between $6 and $9, made-to-order food, option to buy the rest. In addition, most fast-feeders have updated spending fell off nearly 23% to $303 million, sophisticated menus and upscale décor. But No. 2 Tricon Global Restaurants changed their menus and décors, and some are creating as Diageo prepares to spin off the unit. that leaves a wide range of interpretation. its name to Yum Brands after swallowing line extensions. Numerous McDonald’s units This year, Wendy’s International vowed NPDFoodWorld adds to the mix bagel and Yorkshire Global Restaurants and its Long have been converted or built with snazzy to boost its media advertising by 30% and sandwich chains specializing in more portable John Silver’s and A&W Root Beer chains. interiors typically seen in coffeehouses. McDonald’s in July will deliberate over hand-held foods. This month, Yum opens in San Francisco the McDonald’s added its New Tastes Menu, whether to restore its 1.85% franchisee What they both agree on is the appeal first of its Yan Can fast-casual wok and grill Yum’s Taco Bell added grilled quesadillas and contribution, according to executives with these new chains have to baby boomers and Asian concept. burritos and is testing a Taco Bell Grill format; knowledge of the situation. McDonald’s younger consumers. The NPDFoodWorld Even No. 4 Wendy’s International anted KFC upgraded food quality, added wraps and franchisees last year reduced from 1.85% to study shows that 37% of visits at fast-casual up with its purchase of Baja Fresh Mexican is testing WingWorks. 1.5% the proportion of their gross sales chains were by 18- to 34-year-olds. No other Grill and will expand its Canadian-based Tim One thing chains in the Top 10 restaurant contributed to the national ad program. ■ June 24, 2002 | Advertising Age |S-16 SPECIALREPORTLEADING NATIONAL ADVERTISERS

General Motors Corp. The with $10 million-plus each in media advertising by No. 100 Dillard’s placed at $231.29 billion, according to Leaders automaker cut U.S. ad spending by expenditures—the most extensive department stores, up from $283.1 Robert J. Coen, senior VP-director of $571 million to $3.37 billion, a tally brand play by any leader. million in 2000 by Mazda Motor forecasting at Interpublic Group of From Page S-1 down 14.5%. All vehicle megabrands There were 529 brands supported Corp., a list casualty after a spending Cos.’ Universal McCann. recession. The overall decline by the at GM met with double-digit media by the 100 Leaders with at least $10 decline of 13.9%. (See PDF version at 100 Leaders in 1991 was marked by declines except for Chevrolet, down million in media, and the most AdAge.com for Second 100 Leading POST 39.4% OF MEDIA reductions in total advertising by 59 only 4.9%. supported of them all was the Verizon National Advertisers ranking.) The 100 Leaders claimed 39.4% of of the companies; 46 did so in 2001, Runner-up Procter & Gamble Co. telecommunications megabrand on The top 100 as usual proved more total U.S. media expenditures in 2001 not unusual given that aggregate also slipped in ad spending, by 2.8%, which No. 13 Verizon dedicated to at least maintenance- vs. 38.3% in 2000. Their media sales of the top 100 advanced only to $2.54 billion. The largely personal- Communications spent $824.4 level spending in 2001. Their 1.3% outlays hit $42.99 billion, down 5.2%, 2.7% from the previous year. care advertiser actually boosted the million in media, up 51.9%. decline in all forms of advertising vs. $118.45 billion for all advertisers, The biggest ad decline by volume media portion of its ad budget by Price of entry to the top 100 this bettered the 6.5% drop by all down 7.8%, according to Taylor in 2001 came from No. 1 advertiser 2.6% in supporting 45 megabrands go-round was $285.4 million in advertisers, the value of the latter Nelson Sofres’ CMR. Unmeasured forms of advertising and marketing—a cornucopia that includes direct marketing, sales promotion, telemarketing and event marketing, to name a few—rose 3.6% to $37.95 billion for these elite 100, thus appropriating the marketing wisdom that calls for less brand- building through media when a cost- conscious mentality pervades. There are signs of a turnaround in 2002, albeit for marginal ad growth. Several media kingpins show strong gains in the first quarter of this year: Newspapers rose 9.3% and network TV, 6.6%, according to CMR. Evidence, though somewhat thin, of the 100 Leaders pushing up spending levels is in the media pudding in the first quarter of this year. The top 10 Leaders in this report, a group accounting for 30% of the media total of the 100 and 11.8% of all advertiser measured media in 2001, raised their collective consumer media 1.1%. That’s a start. ■ THE MEDIA PIE: SHARE OF $231.29 BILLION TOTAL U.S. AD SPEND Network and national spot TV $35.78 billion; 15.5% Outdoor $5.13 billion; 2.2% Newspaper $44.26 billion; 19.1% Magazine $11.10 billion; 4.8%

Yellow Pages $13.59 billion; 5.9% Internet $5.75 billion; 2.5% Unmeasured $97.03 billion; 42.0% Network & national spot radio $3.67 billion; 1.6% Cable TV networks $11.88 billion; 5.1% Syndicated TV $3.10 billion; 1.3%

Notes: $231.29 billion U.S. advertising spending is an estimate from Robert J. Coen, Universal McCann (AA, May 13; also see chart, Page S-6). June 24, 2002 | Advertising Age |S-18 SPECIALREPORTLEADING NATIONAL ADVERTISERS

TOP 10 WIRELESS PHONE BRANDS WIRELESS TELECOMMUNICATIONS By share of U.S. subscribers in first quarter 2002 MARKET SHARE FULL-YEAR MEDIA AD SPENDING FIRST QUARTER IN 11 CONSUMER MEDIA PER 2001 Options galore, but woes mount RANK BRAND 2002 2001 2001 2000 SHARE POINT 1 Verizon Wireless 21.2% 24.3% 644.2 456.8 $30.3 By TOBI ELKIN 2002 according to Yankee Group, is far and 2 Cingular Wireless* 16.1 18.4 411.3 3.1 25.5 away the biggest ad spender at $644.2 million 3 AT&T Wireless 14.2 14.8 522.4 350.8 36.7 the wireless telecom sector, like the in measured media last year, up 41% from 4 Sprint PCS 9.7 9.5 477.9 427.4 49.3 telecommunications industry overall, is a 2000, according to Taylor Nelson Sofres’ 5 Nextel Communications 6.1 6.4 160.0 127.6 26.3 mess and still slogging through a period of CMR. Verizon Wireless, a 55/45 joint venture 6 Alltell 5.1 5.6 53.3 40.3 10.5 post-merger reorganization and shakeout. between Verizon Communications (the 55%) 7 4.5 4.7 203.7 137.1 45.1 Seismic shifts in the industry and the and the U.K.’s Vodafone, is on pace to spend VoiceStream Wireless evolution of deregulation are spurring much more. Its first quarter 2002 tally was 8 U.S. Cellular 2.7 2.9 8.6 6.4 3.2 telecoms to become all things to all people, $180.6 million in measured media, up 56%. 9 Leap Wireless International** 1.1 0.3 1.9 0.4 1.8 striving to be full-service providers of voice, 10 Western Wireless 0.8 1.0 0.0 0.0 NA video, wireless and high-speed data services. HEAVY SPENDING Top 10 wireless operators 81.5 87.9 2,483.3 1,549.8 NA Amid slow growth in voice services, a Spending is inordinately heavy, in fact, Total U.S. wireless subscribers 132.0 112.0 4,322.4 2,642.7 NA lucrative cash cow for many years, providers among all telecom leaders because of the Notes: Dollars are in millions Measured media from Taylor Nelson Sofres’ CMR. Shares based on 132 million wireless subscribers. Total subs from Cellular Telecommuni- cations & Internet Association. Market share from Yankee Group. *Advertising for Cingular includes some Cellular One, and various wireless units of SBC Communications have made huge investments in fiber-optic intense competition and increasingly national and BellSouth. **Ad spending is for wireless subsidiary, Cricket Communications. technology and other enhancements to their coverage among the big players required to networks to handle the crush of data traffic. just keep market share. Verizon Wireless, These capital outlays were expensive but despite its huge ad spend, still fell 3.1 points in record ad amount for the full year. No. 3 made somewhat of a comeback and has new necessary investments. In wireless, 3G (or market share from the prior-year period. AT&T Wireless boosted 2001 media spending products and marketing, and has stayed loyal third-generation) networks are said to be the Most market leaders in fact lost share as more 48.9% to $522.4 billion, according to CMR. to its high-value business niche. Press reports future, as are short messaging services, Web- niche players stymied share growth. Players Then in first quarter 2002, it added $164.8 have cited AT&T Wireless and Cingular as browsing handsets, games, shopping and outside the top 10 (see chart at right) claimed million (up 57.4%), much of it in the January possible suitors for VoiceStream Wireless, a location-based services via handset. It’s a tall a collective 18.5% share in first quarter 2002, launched of the mLife brand platform. unit of debt-ridden Deutsche Telekom. order that hasn’t taken yet in North America. up from 12.1% in the prior-year period. Aside from the avalanche of offers and fine Customer retention (there’s a 3% No. 2 Cingular Wireless, a 60/40 joint TAKEOVER TARGETS? print, the cost of wireless services, like cable monthly churn) on the consumer and venture of SBC Communications (the 60%) The industry continues to be marked by TV, is creeping up. With little guidance on business sides is a major issue that wireless and BellSouth Corp., dropped 2.3 points to consolidation. Smaller players Sprint PCS, a how to read a cellular bill and taxes piled upon marketers have yet to address in a meaningful 16.1% of the market in first quarter 2002. unit of Sprint Corp., and Nextel taxes, wireless marketers could be in for a way in their marketing and outreach. During 2001, it boosted advertising from $3.1 Communications are takeover targets, many backlash from consumer groups. Still, people Verizon Communications’ Verizon million to $411.3 million, and spent $132.6 industry analysts say. While Sprint has been of all ages remain tethered to their cell Wireless, the No. 1 wireless carrier at 21.2% of million (up 17.2%) in media in first quarter innovative in its products and marketing, it’s phones—a cultural phenomenon that appears the market’s total subscribers in first quarter 2002, putting it on target for a company outflanked by the big guns. Nextel, of late, has to carry no socioeconomic distinction. ■

VIDEOGAMES As the industry strives to reach beyond Cell” as an exclusive to its platform via Ubi traditional kid and teen demographics, more Soft. Movies gain as game fodder and more games will be based on and The action and adventure and role-playing marketed like hit movies. Blockbuster game genres have mass appeal. Nintendo Corp. of By TOBI ELKIN Interactive Digital Software Association. titles like Activision’s “Spider-Man” and America’s popular character-based “Mario” Adding in videogame consoles, handhelds and “Tony Hawk’s” series, Sony Computer and “Zelda” franchises, along with a the $10.5 billion interactive entertainment other hardware, the industry has grown to Entertainment America’s “Gran Turismo 3” smattering of other new titles, are on their industry, unlike other consumer product $10.5 billion. and THQ’s World Wrestling Entertainment way and stoking excitement for Nintendo’s segments over the last year, has shown titles are increasingly being marketed like big- GameCube console, successor to its previous remarkable resilience in the face of a slow- MORE GROWTH AHEAD budget movies. generation N64 format. Nintendo has made growing economy and post-9/11 realities. Wall Street analysts are bullish on the sector. A A flood of videogames is expected based solid progress in positioning its handheld Whether driven by the need for escape or recent Bear Sterns report noted the interactive on a raft of summer and fall movies including Game Boy Advance to older gamers—young the desire to kick back and enjoy increasingly videogame industry would “grow faster than “Star Wars Episode II: Attack of the Clones,” adults and mobile professionals. cinematic and lifelike content on the three any other media sector … Growth in the game “Minority Report,” “Men in Black II” and major videogame consoles, computer and software market is likely to outpace that of the “Sum of all Fears,” a film based on a Tom XBOX MOVING TO 22% SHARE videogame software sales hit $6.35 billion in Internet (advertising), television, radio, motion Clancy novel. Microsoft Corp.’s Xbox Marketers have spent lavishly to support their 2001, up 7.9% from 2000, according to the pictures, music, and newspapers.” console has snared Mr. Clancy’s “Splinter platforms as they try to lure a mass audience to gaming. Xbox is the new kid and has yet to prove itself. Launched just last November, the TOP 10 ELECTRONIC GAMES ADVERTISERS Microsoft console platform nevertheless is By U.S. ad spending in 2001 expected to end 2002 with a 22%share in MEASURED AD SPENDING TOP RENTED VIDEO GAME 2001 GAME GAME AD SPENDING North America, up from 16% in 2001, RANK GAME MAKER 2001 2000 % CHG BY 2001 RENTAL REVENUE (FORMAT) REVENUE 2001 2000 according to Soundview Technology Group. It 1 Nintendo Co. $83.5 $98.9 -15.6 Pokemon Stadium 2 (N64) $8.5 $4.8 NA also predicts Sony’s PlayStation 2 will rack up 2 Sony Corp. 73.9 68.3 8.2 Gran Turismo 3 A-Spec (PS2) 4.9 9.1 NA 50% of the market, down from 70%, and Nintendo’s GameCube, also less than a year 3 Hasbro 28.4 33.8 -15.9 NA NA NA NA 4 24.3 0.1 out of the gate, will get 28%, up from 14%. Microsoft Corp. NA NA NA NA NA By far, Sony is the leader, having shipped 5 24.2 10.9 121.8 8.1 $0.1 Electronic Arts World Is Not Enough (N64) NA more than 33 million PlayStation 2 consoles 6 Activision Publishing 14.2 12.3 15.4 Tony Hawk’s Pro Skater 2 (PSX) 7.0 3.4 3.0 globally. Sony also has had a year’s lead in 7 Capcom USA 11.0 3.3 232.3 Onimusha Warlords (PS2) 3.6 4.5 NA debuting its next-generation console. 8 Sega Corp. 10.8 25.2 -57.1 NA NA NA NA Aside from the consoles, Microsoft, 9 Konami Co. 9.4 3.2 191.3 Metal Gear Solid 2: Sons of Liberty (PS2) 4.0 2.7 NA Nintendo and Sony have embarked on online 10 THQ 8.3 13.8 -39.4 WWE No Mercy 6.5 0.1 2.1 gaming strategies that are bound to unfold Total top 10 288.1 269.7 6.8 42.5 24.6 5.2 slowly over time. Microsoft says this fall it Total market 364.7 365.7 -0.3 NA NA NA will launch the Xbox Live, its gateway to ■ Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR. Rental revenue from VSDA/VidTrac’s top 50. Not all electronic game makers market video games. Nintendo’s new GameCube format in 2002 is supplanting its older N64. online gaming via the Xbox. June 24, 2002 | Advertising Age |S-20 SPECIALREPORTLEADING NATIONAL ADVERTISERS

TOP 7 DISPOSABLE DIAPERS & TRAINING PANTS DIAPERS By share of U.S. diaper/training pants sales MEASURED MEDIA AD SPENDING MARKET SHARE IN 11 CONSUMER MEDIA PER 2001 Trouble in babyland gets response RANK BRAND 2001 2000 2001 2000 SHARE POINT 1 Huggies 44.3% 44.1% $52.1 $56.7 $1.2 By JACK NEFF we’re going to lose share” in training pants, 2 Pampers 23.9 21.8 21.7 30.3 0.9 Mr. Lehman says. But he says Pull-Ups vol- 3 Private Label 17.8 15.9 NA NA NA kimberly-clark corp. is making the latest umes are up so far despite the P&G launch. “I 4 Luvs 8.4 9.5 10.8 17.3 1.3 move in an increasingly competitive U.S. dia- think it’s still early and the jury’s out” on 5 Drypers 2.0 4.1 NA NA NA per and training pants market as it begins this Easy-Ups’ impact, he says. 6 I M Bigg 0.05 0.05 NA NA NA week shipping what it bills as a major im- P&G has tried and failed three times in the 7 0.02 0.03 provement to Huggies Supreme diapers. past decade to enter the training pants seg- Snuggems NA NA NA The Huggies Supreme relaunch, coming ment Pull-Ups founded in the early 1990s, Total for the top 7 96.5 95.5 84.6 104.3 0.9 less than six months after Procter & Gamble Mr. Lehman says, and retail buyers say they Total sales in millions $2,846.2 $2,931.3 113.4 132.5 NA Co. relaunched its Pampers Premium lineup don’t expect Easy Ups to command more than Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR. Market share and total market value from Information Resources Inc. as Pampers Baby Stages of Development, single-digit shares long term. But a P&G marks a step-up in new-product activity after spokeswoman says: “We are in the training TOP 10 DIAPERS/TRAINING PANTS MARKETERS what many retail executives describe as a pants market to stay.” By share of U.S. diaper/training pants sales multiyear lull. P&G’s overall dollar share of diaper sales is MEASURED MEDIA AD SPENDING During that lull, private-label brands down 1.4 points to 40.9% and Huggies’ MARKET SHARE IN 11 CONSUMER MEDIA PER 2001 chipped away at the market, primarily steal- shares are up 1.8 points to 37.9% in the 12 RANK CARRIER 2001 2000 2001 2000 SHARE POINT ing share from P&G. Private label for full- weeks ended May 19, covering the first steps 1 Kimberly-Clark Corp. 45.4% 44.2% $85.2 $96.3 $1.9 year 2001 held a 17.8% share, up nearly 2 of Baby Stages, according to Information Re- 2 Procter & Gamble Co. 33.6 34.4 28.1 36.0 0.8 points from 2000, in the $2.85 billion dispos- sources Inc. numbers reported by Alliance 3 Private Label 17.8 15.9 NA NA NA able diapers and training pants market topped Capital Management’s Sanford C. Bernstein. 4 2.0 4.1 by Kimberly-Clark at 45.4% and P&G at But more than making up for its slippage Drypers Corp. NA NA NA 33.6%. in diapers, P&G gained in training pants, cap- 5 Associated Hygenic Products 0.9 0.9 NA NA NA Huggies Supreme diapers, which previ- turing a 12.1% dollar share in the four weeks 6 Jettar 0.08 0.1 NA NA NA ously stretched only on the sides, get a new ended May 19 as Pull-Ups fell 6.9 points to 7 United Colors of Benetton 0.07 0.002 NA NA NA wide, elastic waistband all around plus an out- 68.4%. IRI scanner data doesn’t cover Wal- 8 Universal Converter 0.06 0.07 NA NA NA er cover that stretches, providing a better fit- Mart Stores, club or dollar stores, and P&G 9 Absormex 0.06 0.04 NA NA NA ting diaper. The improved Huggies Supreme, Chairman-CEO A.G. Lafley has said the com- 10 Paragon Trade Brands 0.04 0.07 0.0 261.1 NA shipping in select sizes this month, will offer a pany’s shares tend to be stronger in the un- Total sales in millions $2,846.2 $2,931.3 113.4 132.5 NA full assortment of sizes by fall, when TV and measured channels. Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR. Shares and total market value from Information Resources Inc. Only the top five mar- print ads from WPP Group’s Ogilvy & Math- “We’re very pleased with [Baby Stages] re- keters offer both disposable diapers and training pants. The next five offer only disposable training pants. er, New York, break. sults both here and in Europe,” the P&G spokeswoman says, adding that sales and MORE LIKE UNDERWEAR shares of P&G’s other diaper brand, value- “Huggies has been fairly consistent in ed P&G to make good on all of them despite Meanwhile, Kimberly-Clark this month also price Luvs, also have rebounded since last spending [over the years],” Kimberly-Clark’s a “while supplies last” disclaimer. Huggies broke TV and print ads from Ogilvy for an year’s price cut. Luvs cut prices 10% in Octo- Mr. Lehman says. “We have seen P&G also got a stronger-than-expected response improvement to Pull-Ups training pants, a ber to get what P&G calls “the value equa- bounce around more. … it seems like when to its program. version 30% thinner and more like real un- tion” right. they have major product change, they may “We haven’t had quite the problem derwear, says Dudley Lehman, group presi- Luvs had been priced on par with Wal- pick up measured media.” Procter has,” Mr. Lehman says. “I think Mart Stores’ White Cloud for both of us it’s been a learning experi- premium private-label P&G TO ADD TO BABY STAGES ence. Going forward, you will certainly brand, though White Cloud, Media spending behind Pampers overall has continue to see loyalty programs. “We have seen P&G bounce a discontinued P&G bath been around $30 million in the past two Whether they will be as high-value per tissue brand name claimed years, according to CMR, down from annual point is something both Procter and we around more. … it seems and later licensed in 1999 by spending of $50 million-plus in previous I’m sure have to assess.” Paper Partners of Boca Ra- years. While innovation in baby care has long like when they have major ton, Fla., offered a diaper P&G is likely to increase its budget this been fast-paced, retail executives had noted a with a clothlike non-woven year when it introduces in the third quarter an slowing in recent years as private-label sales, product change, they may outer cover that Luvs lacked. improvement for Baby Stages, six months af- not coincidentally, have risen. Retailers offer- Luvs has since added a simi- ter the initial launch, say Mr. Lehman and re- ing private-label brands during this period pick up measured media” lar cover. tail executives. The P&G spokeswoman were inspired by White Cloud’s success, and Kimberly-Clark isn’t dis- wouldn’t comment on details, saying only rolled out improved premium store brands at dent-infant and child care at K-C. Pull-Ups closing ad spending for its launches, but these that P&G plans continued improvements. prices that remained below Huggies and Pam- faces its first major-brand competition in sev- introductions are likely to get much of the Both P&G and K-C poured more mon- pers’ base brands. eral years from Pampers, which in February roughly $100 million annually the company ey into bigger payoffs for point-based loy- But following the current manufacturing rolled out Easy Ups pull-on diapers as part of has put behind its diaper and training pants alty programs last year and began includ- overhaul, P&G is poised to step up the new- its Baby Stages. Mr. Lehman says the new businesses in recent years–more than $50 ing them in TV and newspaper ads. product pace, Mr. Lafley has told analysts, and Pull-Ups is preferred by consumers roughly million for Huggies and around $40 million When reward claims for Pampers Perks K-C’s new initiatives show it’s not willing to 2-to-1 over the old ones. for Pull-Ups, according to Taylor Nelson came in ahead of expectations this year, an- surrender the costly ground it has gained in “Obviously, with having a new competitor Sofres’ CMR. gry calls and e-mails from parents prompt- recent years. ■ June 24, 2002 | Advertising Age |S-22 SPECIALREPORTLEADING NATIONAL ADVERTISERS

TOP 10 BEER BRANDS BEER By share of barrels sold in the U.S. in 2001 MEASURED MEDIA AD SPENDING MARKET SHARE IN 11 CONSUMER MEDIA PER 2001 Boom drinkers complicate drinks RANK BRAND 2001 2000 2001 2000 SHARE POINT 1 Bud Light 16.7% 15.6% $93.6 $109.5 $5.6 By HILLARY CHURA see,” says Eric Shepard, executive editor of the 2 Budweiser 16.3 16.9 131.7 158.8 8.1 newsletter. 3 Coors Light 8.1 8.1 121.4 111.2 15.0 starting in 1996, about 3 million people For the 52 weeks ended May 19, beer 4 Miller Lite 7.7 7.9 102.9 90.3 13.4 annually began hitting their prime drinking volume in rose 3.3%, while 5 Natural Light 4.0 3.9 0.1 0.1 0.0 years. This baby boomlet—offspring of baby dollar sales were up 7% to $8.1 billion; 6 3.7 3.8 9.4 18.2 2.5 boomers—is big on sweet drinks, imported flavored malt beverage volume jumped Busch 7 3.0 2.6 31.9 34.5 10.6 beers, low-calorie brews and variety. It affects 57.7%, and sales rose 69.5% to $343 million, Corona Extra everything from the products offered to how according to Information Resources Inc. 8 Busch Light 2.7 2.6 0.1 0.1 0.0 brewers go to market and advertise. 9 Miller High Life 2.6 2.6 21.8 7.2 8.4 “Young drinkers have demonstrated a YOUNG AND FICKLE 10 Miller Genuine Draft 2.6 2.7 49.7 24.5 19.1 remarkable demand for change, innovation and The abundance of options has made young Total top 10 67.4 66.7 562.6 554.3 8.3 new products,” says Tom Pirko, president of consumers fickle. To keep them interested, Total barrels in millions 206.6 205.4 918.7 890.7 NA beverage consulting group Bevmark. “They’re brewers have ramped up research and Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR. Market share from Beer Marketer’s Insights. A barrel of beer (bbl) is equal to 31 not going to stay pat with old-fashioned brands. development. In the 1980s, Anheuser-Busch U.S. gallons (13.7 cases of beer). U.S. light megabrands claimed 43.4% of the total beer market in 2001 vs. 42.3% in 2000. They really want to see things presented in new had about five brands. Now it’s upwards of 30. ways … It’s like ‘Show me something I’ve not “Consumers have more choices, and more TOP 10 MALT ALTERNATIVES seen before.’ Companies are forced to be choices mean less brand loyalty,” says Frank By share of U.S. malt alternative category innovative, forced to change.” Walters, research director at Impact, a spirits MARKET SHARE MEASURED MEDIA AD SPENDING After a drop in births from 1965-75 led to industry publication. 52-WEEKS ENDING MARCH 24 IN 11 CONSUMER MEDIA PER 2001/2 commensurately slack beer demand, volume Many of those choices are sweet alt malts RANK BRAND 2002 2001 2001 2000 SHARE POINT last year rose 0.7%, according to sales figures designed to lure twentysomethings. The 1 Smirnoff Ice 40.8% 6.4% $29.2 $0.0 $0.7 from Beer Marketer’s Insights. The lift was less segment was spawned last year by Diageo’s 2 Mike’s Hard Lemonade/Ice Tea 20.5 19.8 14.7 0.9 0.7 than expected—and actually would have been a Smirnoff Ice. This year, at least nine competing 3 Zima 12.5 25.6 15.9 18.0 1.3 deficit had it not been for the new flavored big-budget alt malts will hit. 4 6.8 15.6 6.3 2.8 0.9 alternative malt drinks—but it bodes well for Though it’s uncertain whether the Tequiza 5 5.4 10.2 0.0 0.0 0.0 the future. The new boomlet is “what everyone segment will take off like imports or fall flat Doc’s Hard Lemon has been hoping for, waiting for and dying to See BEER on Page S-26 6 Hooper’s Hooch (1) 4.9 8.6 0.0 0.0 0.0 7 Rick’s (2) 2.6 4.7 0.6 0.0 0.2 8 Bacardi Silver 1.7 0.0 0.0 0.0 0.0 9 Twisted Tea 1.1 1.6 0.0 0.0 0.0 CIGARETTES 10 Sublime (3) 0.9 1.0 0.0 0.0 0.0 Total sales for the top 10 $310.0 $171.6 66.6 21.7 NA Total sales $318.8 $183.5 NA NA NA B&W leads lower-toxin pitch Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR. Market share from Information Resources Inc. are for food and drug outlets and based on the 52-week period ended March 24, 2002. Malternatives grew 73.7% to $318.8 million in food and drug outlets in this period to claim 4% of total beer sales in these outlets, up from a 2.5% share in the prior-year period. 1) Includes Hard Orange Brew, Hard Red Brew, Hard Lemon Brew; 2) Includes Spiked Lemonade, By CARA B. DIPASQUALE Lights and Omni, respectively, on the same Margarita and Mandarin Line; 3) Includes Hard Raspberry Lemonade, Hard Lemonade, Tangeria. day last November. the industry once mum about the health Advance, carrying the tagline “All of the risks associated with smoking is on a mission taste … Less of the toxins” is available only in been slower than expected, Chairman-CEO bringing reduced-carcinogen products to to bring reduced-toxin cigarettes to market, Indianapolis. Omni, tagged “Reduced Bennett LeBow told analysts during a May market was the responsible thing to do. The representing a rare shared priority among carcinogens. Premium taste” is sold earnings call. Vector is limiting its ad companies don’t attach any health claims to tobacco rivals. nationally. Both are premium-priced like spending until the completion of lab tests that Omni or Advance and include warnings The new products, however, are unlikely Marlboro, Camel and Kool. might allow the marketer to make more indicating that reducing toxins hasn’t been to help the industry recoup its 3.2% decline in Any new segment takes time to develop, definitive statements about potential health proven to reduce harm. cigarette shipments last year (see chart). Most especially one requiring considerable claims. Mr. LeBow says Omni’s current tagline Potentially reduced-risk smokes aren’t a industry observers believe low-toxin smokes consumer education. Part of the Indianapolis could change, since many consumers don’t new idea. R.J. Reynolds Tobacco Co. launched will be niche brands, at best. test for Advance is to measure consumers’ understand what “reduced carcinogens” means. Eclipse—which heats instead of burns Brown & Williamson Tobacco Corp. and understanding of the message being At this point, both Vector and B&W tobacco—in a test market in 1996 and re- Vector Tobacco made forays into the low- delivered. Vector has found consumers to be maintain there’s no such things as a safe introduced the cigarette in 2000 after scientific toxin segment with the launch of Advance confused by its message. Sales of Omni have cigarette, but they have said publicly that testing enabled it to claim that Eclipse may present lower risks. But it remains in test in Dallas-Fort Worth, Texas, although it is TOP 10 CIGARETTE BRANDS available via direct mail in 38 states. Philip By share of cigarettes sold in U.S. Morris USA’s tobacco-heating smoking TOTAL U.S. MEASURED MEDIA AD SPENDING “system” Accord hasn’t progressed from its MARKET SHARE IN CMR’S 11 CONSUMER MEDIA PER 2001 Richmond, Va., test market entered in 1998. RANK BRAND COMPANY 2001 2000 DIFFERENCE 2001 2000 % CHG SHARE POINT For smokers to consider switching, the 1 Marlboro Philip Morris Cos. 38.8% 37.7% 1.2 $33.0 $93.2 -64.6 $0.8 alternatives must resemble traditional 2 Newport Loews Corp. 7.8 7.6 0.2 15.8 24.6 -36.1 2.0 smokes, says Rob Campagnino, a Prudential 3 Doral R.J. Reynolds Tobacco Holdings 5.8 6.2 -0.4 13.3 41.9 -68.3 2.3 Securities analyst, and “Accord and Eclipse 4 Camel R.J. Reynolds Tobacco Holdings 5.6 5.4 0.2 25.9 44.9 -42.3 4.6 failed because they make consumers do something different,” he says. 5 Basic Philip Morris Cos. 5.0 5.2 -0.2 0.0 11.0 -100.0 0.0 Philip Morris is linking marketing reduced- 6 4.8 4.8 -0.0 0.1 25.1 -99.4 0.0 Winston R.J. Reynolds Tobacco Holdings risk cigarettes and advocating federal 7 GPC British American Tobacco 3.2 3.9 -0.7 15.1 13.0 15.6 4.7 regulation, the latter by lobbying the Food & 8 Kool British American Tobacco 2.8 2.8 -0.0 23.2 16.7 38.4 8.3 Drug Administration to regulate tobacco. Until 9 Salem R.J. Reynolds Tobacco Holdings 2.6 2.9 -0.3 0.0 2.1 -100.0 0.0 cigarette companies can “demonstrably show 10 Virginia Slims Philip Morris Cos. 2.4 2.3 0.1 30.4 40.1 -24.3 12.7 proven, reduced risk,” low-toxin cigarettes Top 10 brands 78.9 78.9 0.1 156.7 312.8 -49.9 NA won’t garner a significant following, Mr. Total sticks (cigarettes) in billions 406.5 419.8 NA 318.3 512.7 -37.9 NA Campagnino says. “You’re going to have to Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR. Advertising includes corporate promotional spending in media. Megabrand shares based on total industry shipments in billions of sticks (one cigarette) from company and make some health claims, and to make health industry reports compiled by Prudential Securities. claims, you’re going to need the” FDA. ■ June 24, 2002 | Advertising Age |S-24 SPECIALREPORTLEADING NATIONAL ADVERTISERS

TOP 10 SUPERMARKET CHAINS SUPERMARKETS By share of U.S. grocery store sales in 2001 MEASURED MEDIA AD SPENDING MARKET SHARE IN 11 CONSUMER MEDIA PER 2001 Wal-Mart pressure goes up a notch RANK CHAINS 2001 2000 2001 2000 SHARE POINT 1 Wal-Mart Supercenters 9.6% 8.6% $86.5 $95.4 $9.0 By ALICE Z. CUNEO has razor thin margins, and would lower 2 Kroger Co.(1) 7.3 7.4 93.3 118.5 12.7 Target’s overall margin. Unlike Wal-Mart, 3 Albertson’s (2) 5.6 5.5 121.2 122.6 21.8 wal-mart stores’ annual meeting this year Target’s returns are weighed down by its two 4 Safeway (3) 5.0 5.0 72.6 84.6 14.4 was themed “Let’s roll.” department store chains, Marshall Field’s and 5 Koninklijke Ahold (4) 3.4 4.2 32.8 50.7 9.6 Indeed, Wal-Mart, with grocery-related Mervyn’s. Target, which has recently begun 6 3.1 3.5 20.3 20.1 6.5 sales of $83.7 billion last year ($65.3 billion to add price cut shelf-talkers to its aisles, Supervalu(5)* from supercenters and $18.4 billion from “cannot compete head-to-head with Wal- 7 Wholesale Corp.* 3.0 3.5 0.4 0.4 0.1 Sam’s Club), is rolling over supermarket Mart on price,” says Mr. Flickinger. 8 Sam’s Club* 2.7 2.6 13.7 13.1 5.1 chains and is poised to batter many marketers, The Wal-Mart juggernaut is forcing 9 Fleming(6)* 2.3 2.2 NA NA NA media and advertising businesses in the others to the ring. Koninklijke Ahold’s Giant 10 Super Markets* 2.2 2.1 31.7 33.8 14.3 process. Supermarkets is testing mini-Toys “R” Us Total top 10 44.2 43.9 472.5 488.5 NA Retail consultant Burt Flickinger says over shops within its stores. Total grocery store sales in billions** $682.30 $662.40 706.8 849.1 NA the next three to five years the U.S. will see “Wal-Mart is developing the scale and skill Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR. Shares from Supermarket News. (*) sales from which share was drawn were estimated by SN. **Source: SN and U.S. Department of Commerce. Supermarket sales are composed of the following chains: 1) Kroger, Dillon, , Grocery. 2) Al- “the biggest period of retail consolidation to be one of the largest brand marketers in the bertson’s, Food Basket, , Jewel-Osco, Lucky Food, Max Food, Sav-on Drug, Seessels Food, Super One. 3) Safeway, ABCO Food, Carrs, Dominicks, Genuardis, Pak ‘n since the Great Depression,” and estimates world,” says Mr. Flickinger. “That’s going to Save, , , Tom Thumb, . 4) Ahold includes Stores, Stop & Shop, Tops Markets, Brunos, Peapod. 5) SuperValu, Biggs, County Market, Cub Food, Foodland, Hornbachers, Laneco, Save-A-Lot, Scotts. 6) Flemings’ corporate stores represent only 12% of this total, the rest is largely sales associated with its con- Wal-Mart will grow close to $30 billion to $35 be devastating for the U.S. supermarket tract as supplier to Super Kmart and Super Target (51 of its 62 stores). billion per year, most of it from supermarket industry and for U.S. manufacturers.” ■ sales volume. “That’s the size of Safeway, every year,” says Mr. Flickinger. Indeed, Wal-Mart sales advanced $26.5 billion to $217.8 billion in its most recent fiscal year, AIRLINES directing staff to the coach section, and even ended Jan. 31, 2002. canceling meetings in favor of Wal-Mart Supercenters’ share of the teleconferences. $682.3 billion grocery store market jumped to Air leaders struggle for a way back When targeting the secondary leisure 9.6% in 2001, up from 8.6% in 2000, further market, United and US Airways are increasing the gap with its nearest competitor, By LAURA PETRECCA issue faced by the industry. Southwest trumping fare sales, with the latter also Kroger Co., and almost double the share of Airlines was the first to come back to geographically broadening its ad play. “We each of the next two chains in line, even before the Sept. 11 terrorist assaults, TV–eight days after the terrorist attacks. want to tell consumers to lock in now, fares Albertson’s and Safeway. airlines were battling a dismal travel Southwest ran toned down ads that omitted are low,” says environment. Doleful economic conditions its “Symbol of Freedom” logo. “The country Stephen Usery, US UPPING VISIT FREQUENCY already had caused a precipitous volume drop itself was defending freedom, which had taken Airways VP- “We wanted The behemoth has no plans to stop there. when the terrorist attacks turned the situation on a much larger aura,” says Southwest marketing and Grocery aisles were added to stores in 1997 as into a fiscal catastrophe. The high-profile Senior VP-Marketing Joyce Rogge. revenue to tell a way to increase customer visits. Industry November crash of American Airlines Flight management. consumers surveys have indicated customers visit 587 in Belle Harbor, New York, further EMOTIONAL ADS A Southwest to lock in supercenters with grocery stores two or three spooked jittery consumers. That accident also American Airlines and United Airlines, promotion offered times per week, while they might visit a marked the second time in two months that whose planes were used in the attacks, entered one free ticket with a now, fares discount store three times a month. airlines pulled their advertising in response to a self-imposed TV blackout for more than a discounted ticket. are low” Wal-Mart this year plans to add 180 to 195 a disaster. month. Both companies returned with Southwest is among new supercenters, most selling groceries, in By the end of 2001, revenue of almost all emotional campaigns. Continental Airlines the short-distance the U.S. It also is looking to expand grocery carriers was in a free fall, with the industry put out several specific ads acknowledging the providers that also contend with cheaper and sales in areas it didn’t usually touch with its posting full-year losses of more than $6 attacks, but stayed true to its “Work hard. Fly perceived safer options of travel. It views its smaller, lower-volume neighborhood market billion. In the fourth quarter alone, major right” branding. alternative as the car; shuttle providers, Delta concept. This year, about 15 to 20 new carriers combined lost $3 billion. Ad spending While 2002 has seen a greater recovery in and US Airways, compete against trains. “It’s markets will be added to the 30 currently in reflected the financial woes. Continental business fliers compared with leisure not just my shuttle vs. your shuttle, but my operation, with a national rollout planned Airlines was the lone large airline to increase travelers, the industry continues to focus its plane vs. your train,” says an industry over the next three years. its media budget. advertising on the former, more lucrative, executive. Wal-Mart is getting top-of-the-line share Deciding when to return to the airwaves segment, despite the fact Corporate America In the Northeast, Delta and US Airways for its minimal ad dollar, and joins other and what messages to present was a weighty is scaling back company travel policies, have gone head to head with Amtrak’s high- supermarket chains in spending most of its ad speed Acela Express train line: US Airways funds on unmeasured advertising such as print ads read, “Time flies, it doesn’t wait for a point-of-purchase displays and local TOP 10 U.S. AIRLINES train.” Delta ads proclaim: “Planes are faster newspaper circulars. Measured media, for By share of U.S. revenue passenger miles in 2001 than trains.” example, is only 15.2% of Wal-Mart’s total MEASURED MEDIA AD SPENDING advertising, 18% of Kroger’s and 26.6% of MARKET SHARE IN 11 CONSUMER MEDIA PER 2001 TECHNOLOGY REDUCES HASSLES Albertson’s. RANK CARRIER 2001 2000 2001 2000 SHARE POINT In the wake of longer security lines and Wal-Mart also is emerging as one of the 1 United Airlines 17.9% 18.3% $57.3 $78.4 $3.2 increased delays, airlines are tapping into nation’s largest retailers of its own private- 2 American Airlines 16.3 16.8 71.7 98.0 4.4 technology to improve airport flow. They’re label brands, although it insists its strategy 3 Delta Air Lines 15.0 15.6 32.1 67.8 2.1 also playing up equipment advances in their remains selling brand names at low prices. 4 Northwest Airlines 11.2 11.4 41.5 54.6 3.7 marketing. United is installing easy-to-use, However, as Wal-Mart becomes more self-service check-in units and has enacted a 5 Continental Airlines 9.0 9.0 22.2 18.4 2.5 involved in manufacturing, retail consultants 6 7.0 6.8 17.0 32.1 2.4 flight update system that pages, calls or e- expect Wal-Mart to emphasize products in its US Airways mails customers to give them schedule 7 6.8 6.1 113.8 122.8 16.7 spots, perhaps competing head-on with Southwest Airlines information. Southwest rolls out this month marketers it has so effectively corralled on 8 America West Airlines 2.9 2.8 9.4 14.8 3.2 its first-ever automated boarding pass prices. The retailer’s current ad focus brands 9 TWA Airlines 2.3 3.9 0.0 0.0 0.0 system. the store using employees and customers, and 10 Alaska Airlines 1.9 1.7 8.0 11.7 4.2 Delta offers virtual check-in and flight stresses low prices. Top 10 subtotal 90.4 92.4 372.9 498.6 4.1 information for Palm Pilots. Delta’s goal now Not even other discounters are insulated Total RPMs for major airlines 606.2 650.6 NA NA NA is to make flying “a more people-friendly from Wal-Mart’s jaws. Target Corp.’s Target Total RPMs 651.7 692.8 571.4 725.4 NA experience” and says: “We understand what Stores is expanding into grocery retailing, a Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR. Airline shares based on revenue passenger miles traveled in the U.S. (an RPM is one pas- is upsetting you, and we’re trying to solve potentially treacherous move. Food typically senger transported one mile in revenue service) from the U.S. Bureau of Transportation. Total RPMs are in billions. that,”says a Delta spokesperson. ■ June 24, 2002 | Advertising Age |S-26 SPECIALREPORTLEADING NATIONAL ADVERTISERS

$51.2 million was less than 20% of the overall On the other end of the spectrum, MOVIES box office take. Typically in the debut year of Paramount Pictures had a major summer 2001 a movie, video sales/rentals account for 40% hit in “Lara Croft: Tomb Raider” as it hit some to 50% of its overall theatrical box office $131.2 million in U.S. box office receipts. This Once spurned, video a key driver revenue, with of course more video returns didn’t guarantee much success as a home video following in subsequent years. This isn’t to release, however, as it pulled in just $12.4 By WAYNE FRIEDMAN last year, actually drew $6.1 million in home say that studios still used their old ways in million in VHS/DVD rental revenue, less than video advertising. “We used to only spend marketing home video from recently released 10% of its overall U.S. box office take. home video, not theatrical films, has been [home video advertising money] on movies movies. Take DreamWorks’ “The Mexican.” the big driver for many entertainment that did at least $200 million” in U.S. box office, “The Mexican,” an offbeat caper movie SURPRISING ‘MEET THE PARENTS’ companies. Now this entertainment says Mr. Kornblau. He says Universal spent starring Brad Pitt and Julia Roberts, was The best performer for VHS/DVD revenue in segment—composed of VHS and DVD significantly to support the “Spy Games” marketed for home video release almost 2001 was Universal Pictures’ “Meet The rentals and sales that topped $20 billion in video, a thriller that drew a modest $62.3 purely as a rental, which, in this case, meant Parents,” posting $115.6 million, vs. the 2001—is angling to be even bigger as ad million at box office. no reportable home-video ad revenue. movie’s total U.S. box office take of $161.5 budgets for home video grow and increased The biggest home-video ad budget for Columbia TriStar’s “The Wedding Planner,” million. Much of this business is attributed to home video sales augment rentals. 2001 went to DreamWorks SKG’s “Shrek.” another middling theatrical released, was sold the October 2000 release date of “Meet the Typically, an initial VHS/DVD release Taylor Nelson Sofres’ CMR reports the about the same way for home video, with a Parents,” giving the home video a full year in currently costs $2 million to $6 million in studio spent $22.8 million, better than the scant $47,000 spent on media. 2001 to garner revenue. advertising and promotion, a fraction of the average theatrical release, in pushing Both “The Mexican” and “The Wedding This year, “Harry Potter & the Sorcerer’s $22 million media outlay for the average “Shrek.” That film is somewhat a different Planner” did about $60 million in box office Stone” is likely to make home video returns for wide-release theatrical movie. The reason for story, though. It’s an animated feature receipts, and pulled in about the same from other movies pale in comparison. Warner Bros. the lower VHS/DVD ratio to wide-screen positioned as a major sell-through for the VHS/DVD rental revenue. “Harry Potter,” released the last week of May release is the coattail-effect the video release holiday season, and in fact, is being slotted by One of the surprise home video hits of the in VHS/DVD, sold nearly 10 million inherits from the buzz and huge marketing DreamWorks to be an evergreen property year was Disney-owned Buena Vista Pictures’ VHS/DVD copies in the first week, according buildup, from advertising to consumer sold for years to come at holidays. “O Brother, Where Art Thou?” According to to Video Business. Added to rentals of $13.2 product tie-ins, accompanying the initial Given the blockbuster status of “Shrek,” CMR, the studio only spent $212,500 for the million in that period, the “Harry Potter” theatrical release. which drew some $267.7 million in U.S. box video release of the movie to pull in some home video achieved two-thirds of the movie’s office receipts, VHS/DVD rental revenue at $63.3 million in home video rentals in 2001. $317.6 million take to date in the first week. ■ BUDGETS ARE HEADING UP Things are changing, though. Overall, ad budgets are growing for home video. That’s TOP 10 MOTION PICTURES* because the business is being pushed into By revenue from U.S. box office, VHS and DVD for 2001 doing more “sell-through”—revenue derived MOVIE REVENUE IN 2001 TOTAL 11-MEDIA U.S. MEASURED MEDIA AD SPENDING REVENUE PER AD DOLLAR IN 2001 from sales of VHS/DVD vs. that of rentals. BOX DVD & DVD & BOX DVD & Sales, the domain of kids movies especially RANK BRAND STUDIO OFFICE VHS TOTAL MOVIE VHS TOTAL OFFICE VHS TOTAL classic Walt Disney Co. films, are being 1 Shrek DreamWorks $267.7 $51.2 $318.9 $53.7 $22.8 $76.5 $5.0 $2.2 $4.2 extended to video releases of average- 2 Hannibal MGM 165.1 63.1 228.2 29.1 5.0 34.1 5.7 12.6 6.7 performing theatrical movies. Craig 3 91.2 61.1 152.3 14.9 1.0 15.9 6.1 59.5 9.6 Kornblau, president of Universal Studios Save the Last Dance Paramount 4 96.5 43.4 139.9 18.5 2.3 20.8 5.2 19.0 6.7 Home Video, says movies like last year’s Legally Blonde MGM “Swordfish” from Warner Bros. wouldn’t 5 Along Came A Spider Paramount 74.1 51.6 125.7 22.3 2.6 24.9 3.3 19.7 5.0 have received much ad support in the past, but 6 Mexican DreamWorks 66.8 58.1 124.9 21.8 0.0 21.8 3.1 NA 5.7 now these movies are getting significant ad 7 Wedding Planner Columbia TriStar 60.4 63.6 124.0 13.4 0.0 13.5 4.5 1,342.0 9.2 dollars against their VHS/DVD debut. 8 Swordfish Warner 69.8 52.0 121.8 26.9 6.1 32.9 2.6 8.6 3.7 “Your average home video release is going 9 Down to Earth Paramount 64.2 48.6 112.8 20.0 1.2 21.2 3.2 39.1 5.3 up radically [in advertising],” he says. “The 10 O Brother, Where Art Thou? BV/Touchstone 43.6 63.3 106.9 7.8 0.2 8.0 5.6 297.8 13.4 average rental for a $60 million movie at box Top 10 999.4 556.0 1,555.4 228.2 41.3 269.6 NA NA NA office would have had an ad budget of $1 Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR. *Methodology: Movies listed had to be released in 2001 except for “O Brother, Where Art Thou?” which had only $2.4 million in B.O. receipts in late 2000. Movies shown also million.” Now, for instance, “Swordfish,” had to have both VHS and DVD rentals in 2001. Movies were taken from Variety’s top 250 by box office receipts, and VHS and DVD rentals were required to be among VSDA/VidTrac’s top 50 by revenue in 2001. which pulled in $69.8 million at the box office

Beer: new tastes on 330 Internet web sites. METHODOLOGY UNMEASURED SPENDING: Unmeasured is an Ad Age estimate From Page S-22 and includes direct mail, sales promotion, co-op spending, like wine coolers, brewers have jumped in: THE 100 LEADING National Advertisers are selected from the 250 couponing, catalogs, business and farm publications and special Anheuser-Busch with Bacardi Silver, Coors largest national advertisers based on measured U.S. media events, to name a few. Unmeasured is the difference between a Brewing Co. with Vibe, and Philip Morris spending in 2001. That group is pared to 100 after estimated company’s reported or estimated ad costs and its measured media. Cos.’ Miller Brewing Co. with Sauza Diablo, unmeasured expenditures are added. All ad spending figures A COMPANY’S REPORTED ad costs, typically worldwide, Jack Daniel’s Original Hard Cola, Stolichnaya throughout this report are U.S. only. are found generally in public documents and are weighted by Ad Citrona and Skyy Blue. MEASURED MEDIA advertising is spending in 13 national Age to reflect a U.S.-only percentage. Unmeasured for private Extrapolating media spending levels from consumer media monitored by Taylor Nelson Sofres’ CMR, Internet companies is modeled to the unmeasured ratios of their publicly- Taylor Nelson Sofres’ CMR, these and other from CMRinteractive, and Yellow Pages from Yellow Pages held direct competitors. marketers are on track to spend more than Integrated Media Association. EACH TOP 100 COMPANY is profiled in a PDF file that can be $350 million in media backing the malt MEASURED MEDIA: CMR measures ads in 400-plus downloaded from AdAge.com QwikFIND aan60i. Profiles include alternatives this year, compared with $563 newspapers in 60 of the nation’s top markets. CMR monitors the most recent fiscal-year financial returns, a company’s million last year for the top 10 beer brands. space in national newspapers, the Wall Street Journal, USA Today megabrands that generate $10 million-plus in media advertising in For all the new products and big budgets, and the New York Times. PIB/CMR Magazines measures ads in 2001 (the top 100 supported 529 brands at this spending level), beer today isn’t so different from the past 25 256-plus consumer magazines and Sunday magazines. CMR data 13-media breakouts for the company’s ad spending, corporate years. Young men drink twice as much as include revenue in more than 280 outdoor plant operator contacts, leading marketing personnel by division on which everyone else, as long as it’s not their dads’ markets. CMR monitors network TV ads on ABC, CBS, NBC, Fox, contact information is provided, the brands those executives beer; sports is a big draw; and so is advertising WB, UPN and Pax TV, and spot TV on 540-plus stations in the top cover, agencies with which they do business and the agency with hot babes. The changing landscape 100 U.S. markets. CMR provides spending for more than 200 account personnel on the major brands. “requires [us] to better understand our syndicated TV programs per month through 24-hour monitoring. STAFF FOR THIS REPORT: KEVIN BROWN, consumers, increase investment … and have a CMR continuously monitors 37 cable TV networks and five radio R. CRAIG ENDICOTT, SCOTT MACDONALD, JULIE A. JOHNSON, quicker time to market,” says Ed Gawronski, networks. CMR gathers spot radio data from 4,000 stations in PHILIP MONTGOMERY-FLEMING, MARK SCHUMANN, Miller VP-marketing and business insights. ■ more than 225 markets. CMRi’s AdNetTrackUS tracks advertising JENNIE SIERRA, DERMOT CONNOLLY, MIKE RYAN AND DAN LIPPE. June 24, 2002 | Advertising Age |S-28 SPECIALREPORTLEADING NATIONAL ADVERTISERS

REVENUE PER ADVERTISING DOLLAR EXPENDITURE By most advertised segment U.S. REVENUE PER AD DOLLAR TOTAL U.S. AD SPENDING U.S. CORPORATE REVENUE WORLDWIDE 2001 RETURNS % RETURN CATEGORY RANK ADVERTISER 2001 2000 2001 2000 2001 2001 SALES EARNINGS ON SALES Automotive 3 Ford Motor Co. $44.97 $50.47 $2,408 $2,345 $108,296 $118,367 $162,412 ($5,453) NA 1 General Motors Corp. 39.24 34.57 3,374 3,945 132,399 136,399 177,260 601 0.3 6 DaimlerChrysler 36.62 36.36 1,985 2,162 72,708 78,622 136,999 (593) NA 14 Toyota Motor Corp. 33.26 34.81 1,399 1,291 46,529 44,924 125,790 5,128 4.1 22 Honda Motor Co. 31.44 31.54 1,103 1,035 34,673 32,643 61,307 3,020 4.9 40 Nissan Motor Co. 27.39 27.50 775 814 21,218 22,378 49,626 2,982 6.0 51 Volkswagen 26.82 24.95 596 558 15,980 13,935 79,347 2,662 3.4 92 Mitsubishi Motors Corp. 24.59 25.60 290 320 7,125 8,198 25,634 90 0.4 98 Kia Motors Corp. NA NA 287 167 NA NA 9,626 430 4.5 Beer, wine & liquor 48 Anheuser-Busch Cos. 18.85 16.83 656 710 12,356 11,955 12,911 1,705 13.2 69 Adolph Coors Co. 5.47 5.25 430 444 2,354 2,332 2,843 123 4.3 Candy 78 Hershey Foods Corp.* 12.47 12.52 366 337 4,557 4,221 4,557 207 4.5 49 Mars Inc. NA NA 615 674 NA NA 16,500 NA NA Cleaners 82 Clorox Co. 9.77 9.47 338 340 3,299 3,214 3,903 323 8.3 63 S.C. Johnson & Son** 7.38 7.10 479 465 3,534.0 3,300.0 4,500 NA NA 85 Reckitt Benckiser 4.89 4.73 316 293 1,547 1,387 4,959 513 10.3 Computers & software 88 Dell Computer Corp. 72.00 74.98 302 305 21,760 22,871 31,168 1,780 5.7 26 IBM Corp. 35.44 31.30 994 1,189 35,215 37,216 85,866 7,732 9.0 33 Hewlett-Packard Co.*** 35.29 38.83 899 1,040 31,725 40,382 78,780 NA NA 71 Intel Corp. 22.02 18.00 426 773 9,382 13,912 29,539 1,291 4.4 94 Gateway 19.13 20.71 289 398 5,528 8,238 6,080 (1,034) NA 31 Microsoft Corp. 17.07 16.03 920 855 15,700 13,700 22,956 9,421 41.0 Drugs 21 Merck & Co. 35.11 33.15 1,137 995 39,900 33,000 47,716 7,282 15.3 36 GlaxoSmithKline 16.48 15.53 881 837 14,525 13,002 29,504 4,405 14.9 55 Bayer 14.97 13.40 567 649 8,489 8,701 27,132 865 3.2 57 Novartis 13.97 14.02 552 588 7,716 8,248 17,916 3,928 21.9 74 Aventis 13.79 13.09 421 380 5,804 4,969 15,839 1,463 9.2 27 Bristol-Myers Squibb Co. 13.51 12.09 974 1,002 13,154 12,114 19,423 2,527 13.0 52 Pharmacia Corp. 13.24 12.68 590 547 7,815 6,939 13,837 1,501 10.8 10 Johnson & Johnson 12.49 11.06 1,618 1,601 20,204 17,707 33,004 5,668 17.2 62 Schering-Plough Corp. 12.06 12.11 498 520 6,001 6,299 9,802 1,943 19.8 41 Wyeth 11.71 12.03 771 669 9,029 8,045 14,128 2,285 16.2 5 Pfizer 9.10 7.86 2,189 2,258 19,932 17,753 32,259 7,788 24.1 Entertainment & media 47 General Electric Co. 112.19 58.70 664 1,310 74,476 76,896 125,913 13,684 10.9 7 AOL Time Warner 17.33 17.12 1,885 1,776 32,676 30,402 38,234 (4,921) NA 16 Sony Corp. 16.13 17.47 1,310 1,201 21,127 20,983 56,534 123 0.2 17 Viacom 15.17 13.43 1,283 1,223 19,466 16,428 23,223 (224) NA 45 News Corp. 14.81 17.71 670 553 9,929 9,794 13,301 1,608 12.1 61 Vivendi Universal** 13.88 12.59 498 567 6,919.0 7,144.0 52,147 (1,017) NA 9 Walt Disney Co. 11.93 11.61 1,757 1,819 20,970 21,113 25,269 (158) NA Financial 81 Berkshire Hathaway* 110.97 74.81 339 455 37,668 34,006 37,668 795 2.1 77 Morgan Stanley Dean Witter & Co. 43.43 36.00 385 540 16,726 19,421 21,896 3,521 16.1 67 American Express Co. 39.42 34.43 444 538 17,522 18,529 22,582 1,311 5.8 91 State Farm Mutual Automobile Ins. Co. NA NA 292 298 NA NA 46,700 (5,000) NA 80 Visa International NA NA 347 444 NA NA NA NA NA 97 MasterCard International NA NA 288 311 NA NA NA NA NA Food 46 ConAgra 34.71 37.42 668 586 23,194 21,935 27,194 639 2.3 8 Philip Morris Cos. 28.69 22.35 1,816 1,966 52,098 43,951 89,924 8,560 9.5 28 Nestle 16.37 16.10 967 967 15,832 15,563 50,416 3,977 7.9 73 Kellogg Co. 14.54 8.89 422 457 6,129 4,067 8,853 474 5.4 Notes: Dollars are in millions, except revenue per ad dollar, which is actual. *Worldwide sales used as U.S. sales. ** U.S. sales are AA estimates. Sales and earnings are from public documents and represent the most current fiscal year. Advertisers are placed in their most advertised segment, which is often not the segment that generates the most revenue or income. Hewlett-Packerd Co. includes Compaq Computer Corp. June 24, 2002 | Advertising Age |S-30 SPECIALREPORTLEADING NATIONAL ADVERTISERS

REVENUE PER ADVERTISING DOLLAR EXPENDITURE (CONTINUED) By most advertised segment U.S. REVENUE PER AD DOLLAR TOTAL U.S. AD SPENDING U.S. CORPORATE REVENUE WORLDWIDE 2001 RETURNS % RETURN CATEGORY RANK ADVERTISER 2001 2000 2001 2000 2001 2001 SALES EARNINGS ON SALES Food (continued) 76 Campbell Soup Co. 12.65 14.47 397 333 5,021 4,820 6,664 649 9.7 38 Sara Lee Corp. 12.47 13.32 812 749 10,131 9,979 17,747 2,266 12.8 35 General Mills 7.63 7.48 884 854 6,745 6,387 7,078 665 9.4 83 U.S. dairy producers, processors NA NA 330 344 NA NA NA NA NA Hotels 96 Marriott International* 35.22 40.63 288 248 10,152 10,080 10,152 236 2.3 59 Cendant Corp. 14.87 9.56 527 414 7,842 3,955 8,882 385 4.3 89 Hilton Hotels Corp.* 10.30 10.20 296 338 3,050 3,451 3,050 166 5.4 Miscellaneous 84 Eastman Kodak Co. 19.81 19.72 324 345 6,419 6,800 13,234 76 0.6 53 Nike 8.36 7.66 577 618 4,819 4,732 9,489 590 6.2 66 Mattel 7.61 7.61 449 454 3,414 3,450 4,804 299 6.2 24 U.S. Government NA NA 1,057 1,262 NA NA NA NA NA Personal care 87 Kimberly-Clark Corp. 30.65 30.18 304 300 9,328 9,059 14,524 1,610 11.1 79 Colgate-Palmolive Co. 8.13 8.30 355 333 2,888 2,762 9,428 1,835 19.5 64 Gillette Co. 8.11 8.33 463 446 3,757 3,715 8,961 910 10.2 2 Procter & Gamble Co. 8.00 7.67 2,541 2,614 20,334 20,038 39,244 2,922 7.4 11 Unilever 7.63 6.49 1,484 1,523 11,315 9,880 46,165 1,647 3.6 25 L’Oreal 3.69 3.52 1,041 986 3,840 3,473 12,313 1,230 10.0 42 Estee Lauder Cos. 3.67 3.71 766 718 2,815 2,659 4,608 305 6.6 Restaurants 99 Doctor’s Associates** 13.40 13.58 286 235 3,830 3,191 4,500 NA NA 19 Diageo 7.82 7.62 1,181 1,129 9,231 8,604 18,489 1,768 9.6 44 Yum Brands 7.13 7.53 677 673 4,827 5,062 6,953 492 7.1 86 Wendy’s International 5.52 5.45 312 296 1,724 1,616 2,391 194 8.1 18 McDonald’s Corp. 4.52 4.12 1,195 1,275 5,396 5,259 14,870 1,637 11.0 Retail 54 Wal-Mart Stores 317.97 317.49 573 502 182,314 159,229 217,799 6,671 3.1 60 Kroger Co.* 97.93 88.90 512 551 50,098 49,000 50,098 1,043 2.1 65 Albertson’s* 82.87 83.01 458 443 37,931 36,762 37,931 501 1.3 68 Safeway 70.07 70.37 440 406 30,866 28,534 34,301 1,254 3.7 39 Home Depot* 68.83 70.09 778 653 53,553 45,738 53,553 3,044 5.7 50 Kmart Corp.* 60.58 68.30 597 542 36,151 37,028 36,151 (2,418) NA 30 Target Corp.* 43.09 44.60 926 827 39,888 36,903 39,888 1,368 3.4 58 Best Buy Co.* 36.11 32.17 543 476 19,597 15,327 19,597 570 2.9 93 Office Depot 32.64 28.82 290 344 9,452 9,902 11,154 201 1.8 75 Circuit City Stores 31.20 27.63 410 469 12,791 12,959 12,791 219 1.7 23 J.C. Penney Corp.* 29.48 30.78 1,086 1,035 32,004 31,846 32,004 98 0.3 100 Dillard’s* 28.58 29.66 285 289 8,155 8,567 8,155 72 0.9 72 Gap Inc. 28.29 25.61 426 467 12,047 11,973 13,848 (8) NA 56 May Department Stores Co.* 25.64 25.45 553 570 14,175 14,511 14,175 703 5.0 12 Sears, Roebuck & Co. 24.83 24.97 1,480 1,468 36,753 36,655 41,078 735 1.8 70 Limited Brands* 21.86 21.57 428 468 9,363 10,105 9,363 519 5.5 43 Federated Department Stores* 20.98 20.56 746 809 15,651 16,638 15,651 (276) NA 90 Saks Inc. 20.59 21.03 295 313 6,071 6,581 6,071 0.4 NA Soft drinks 32 Coca-Cola Co. 8.33 8.22 903 897 7,526 7,372 20,092 3,969 19.8 4 PepsiCo 8.24 8.06 2,210 2,114 18,215 17,051 26,935 2,662 9.9 Telecommunications 29 SBC Communications* 48.68 64.81 943 793 45,908 51,374 45,908 7,242 15.8 13 Verizon Communications 44.23 44.62 1,462 1,391 64,649 62,066 67,190 11,532 17.2 15 AT&T Corp.* 38.30 45.76 1,372 1,214 52,550 55,533 52,550 7,715 14.7 37 WorldCom 35.73 36.80 840 818 30,013 30,093 35,179 1,384 3.9 20 Sprint Corp. 21.55 18.10 1,160 1,237 25,000 22,400 26,071 (1,401) NA 34 AT&T Wireless* 15.33 17.20 888 607 13,610 10,446 13,610 (887) NA 95 Deutsche Telekom 13.83 8.76 289 270 3,997 2,362 43,285 (3,137) NA Notes:Dollars are in millions, except revenue per ad dollar, which is actual. *Worldwide sales used as U.S. sales. ** U.S. sales are AA estimates. Sales and earnings are from public documents and represent the most current fiscal year. Advertisers are placed in their most advertised segment, which is often not the segment that generates the most revenue or income. June 24, 2002 | Advertising Age |S-32 SPECIALREPORTLEADING NATIONAL ADVERTISERS

TOP 10 ADVERTISERS IN 12 MEASURED MEDIA Ranked by measured spending per medium in 2001 MEASURED AD SPENDING IN MEDIUM MEASURED AD SPENDING IN MEDIUM MEASURED AD SPENDING IN MEDIUM RANK ADVERTISER 2001 2000 % CHG RANK ADVERTISER 2001 2000 % CHG RANK ADVERTISER 2001 2000 % CHG MAGAZINE NETWORK TV NETWORK AND NATIONAL SPOT RADIO 1 Procter & Gamble Co. $477.3 $472.9 0.9 1 General Motors Corp. $661.8 $965.7 -31.5 1 SBC Communications $73.2 $58.0 26.2 2 Philip Morris Cos. 448.3 585.3 -23.4 2 Procter & Gamble Co. 596.5 557.5 7.0 2 Verizon Communications 69.1 72.1 -4.1 3 General Motors Corp. 391.4 486.9 -19.6 3 Johnson & Johnson 430.4 447.6 -3.9 3 Viacom 47.9 56.0 -14.5 4 AOL Time Warner 305.5 351.5 -13.1 4 Philip Morris Cos. 416.7 515.1 -19.1 4 AT&T Wireless 44.3 3.4 1186.6 5 Ford Motor Co. 303.3 250.0 21.3 5 AOL Time Warner 359.4 307.8 16.8 5 Walt Disney Co. 43.8 37.0 18.3 6 DaimlerChrysler 258.3 300.1 -13.9 6 Pfizer 343.8 364.8 -5.8 6 AOL Time Warner 41.6 51.4 -19.0 7 L’Oreal 236.0 199.0 18.6 7 GlaxoSmithKline 335.4 317.1 5.8 7 Home Depot 39.9 11.7 242.0 8 Johnson & Johnson 211.3 190.6 10.8 8 PepsiCo 334.8 338.1 -1.0 8 News Corp. 36.5 34.2 6.5 9 Toyota Motor Corp. 199.3 194.8 2.3 9 Walt Disney Co. 311.4 317.2 -1.8 9 General Motors Corp. 35.8 49.7 -28.1 10 Pfizer 163.5 180.2 -9.3 10 Ford Motor Co. 305.1 290.1 5.2 10 Sears, Roebuck & Co. 33.1 36.2 -8.6

SUNDAY MAGAZINE SPOT TV OUTDOOR 1 National Syndications $138.3 $123.5 12.1 1 DaimlerChrysler $559.5 $826.2 -32.3 1 Anheuser-Busch Cos. $44.7 $27.4 63.1 2 Bradford Exchange 52.1 35.1 48.3 2 General Motors Corp. 475.1 582.8 -18.5 2 Philip Morris Cos. 41.5 35.4 17.2 3 Bose Corp. 46.2 34.0 35.8 3 Honda Motor Co. 275.9 305.1 -9.6 3 McDonald’s Corp. 35.5 30.0 18.5 4 Procter & Gamble Co. 44.7 34.0 31.5 4 Ford Motor Co. 250.1 305.8 -18.2 4 AOL Time Warner 27.4 15.7 74.4 5 Dell Computer Corp. 37.6 17.2 118.3 5 Verizon Communications 226.2 287.4 -21.3 5 Diageo 27.2 22.7 19.9 6 Roll International 28.1 25.7 9.5 6 Toyota Motor Corp. 201.6 225.7 -10.7 6 General Motors Corp. 25.7 24.4 5.0 7 Bristol-Myers Squibb Co. 27.8 16.0 74.3 7 Yum Brands 186.5 214.5 -13.1 7 Walt Disney Co. 25.5 18.7 36.0 8 U.S. Government 23.5 7.2 226.3 8 McDonald’s Corp. 179.5 223.8 -19.8 8 Cendant Corp. 24.7 21.0 17.7 9 Walt Disney Co. 20.9 13.3 57.0 9 Nissan Motor Co. 172.1 245.4 -29.9 9 Gap Inc. 23.0 19.5 17.7 10 Campbell Soup Co. 19.0 20.6 -7.6 10 General Mills 163.8 208.6 -21.5 10 Nextel Communications 22.6 15.0 50.8

NEWSPAPER SYNDICATED TV INTERNET 1 Federated Department Stores $485.7 $537.4 -9.6 1 Procter & Gamble Co. $189.1 $144.8 30.5 1 Ebay $45.4 NA NA 2 May Department Stores Co. 431.9 457.0 -5.5 2 GlaxoSmithKline 127.7 79.3 61.0 2 General Motors Corp. 44.3 $53.1 -16.6 3 Verizon Communications 322.2 303.3 6.2 3 AOL Time Warner 97.8 82.4 18.6 3 Providian Corp. 29.3 NA NA 4 AT&T Wireless 311.8 181.3 72.0 4 Pfizer 76.5 43.3 76.5 4 Amazon.com 27.7 NA NA 5 AOL Time Warner 212.6 261.6 -18.7 5 Berkshire Hathaway 71.5 80.8 -11.5 5 AOL Time Warner 27.2 27.0 0.8 6 SBC Communications 211.5 211.5 -0.0 6 General Motors Corp. 66.7 114.8 -41.9 6 Barnes & Noble 26.0 17.4 49.4 7 Dillard’s 204.3 208.4 -2.0 7 McDonald’s Corp. 66.4 56.4 17.8 7 Bank One Corp. 25.9 27.2 -4.6 8 Target Corp. 190.6 211.9 -10.1 8 Unilever 65.7 93.7 -29.9 8 Classmates Online 24.3 NA NA 9 Sprint Corp. 182.8 154.9 18.0 9 Johnson & Johnson 63.7 87.7 -27.3 9 Vivendi Universal 22.2 18.8 18.4 10 General Motors Corp. 178.8 305.0 -41.4 10 Philip Morris Cos. 62.8 104.7 -40.0 10 Dell Computer 21.0 NA NA

NATIONAL NEWSPAPER CABLE TV NETWORKS YELLOW PAGES 1 Ford Motor Co. $67.5 $48.8 38.5 1 AOL Time Warner $294.1 $156.7 87.6 1 ServiceMaster Co. $48.5 $39.0 24.5 2 AOL Time Warner 53.7 75.2 -28.6 2 Procter & Gamble Co. 271.6 275.6 -1.4 2 U-Haul 37.0 34.8 6.5 3 IBM Corp. 49.2 63.4 -22.4 3 General Motors Corp. 249.3 281.4 -11.4 3 BGI 27.2 27.5 -0.9

4 General Motors Corp. 46.8 62.7 -25.3 4 Philip Morris Cos. 222.7 230.1 -3.2 4 State Farm Mutual Auto Ins. Co. 26.0 20.0 30.0 5 Dell Computer Corp. 45.5 34.7 30.9 5 AT&T Corp. 158.0 81.8 93.2 5 Ford Motor Co. 24.7 25.3 -2.1 6 Hewlett-Packard Co. 43.3 29.7 45.6 6 General Mills 150.4 135.7 10.8 6 Allstate Insurance Group 22.0 21.0 4.8 7 Federated Department Stores 40.9 41.1 -0.5 7 Pfizer 145.6 117.6 23.8 7 General Motors Corp. 20.0 20.0 0.0 8 Walt Disney Co. 39.1 45.2 -13.4 8 Johnson & Johnson 130.0 140.3 -7.3 8 Unigroup 19.0 18.1 4.9 9 Merrill Lynch & Co. 35.6 17.4 104.2 9 GlaxoSmithKline 124.3 122.8 1.2 9 Sirva 17.9 18.1 -0.7 10 Sprint Corp. 34.5 33.0 4.5 10 Walt Disney Co. 122.9 104.0 18.2 10 Qwest Communications Int’l 17.7 15.1 17.4 Notes: Dollars are in millions. Measured media from Taylor Nelson Sofres’ CMR and Yellow Pages Integrated Media Assn. CMR’s network radio and national spot radio categories are combined in the upper right table. See Page S-26 for methodology.